Pure Competition
Pure competition is a term used to describe a market structure where there are many buyers and sellers, and no single buyer or seller has the ability to control the price. This creates a level playing field where prices are determined by supply and demand, and where companies must compete on factors such as quality, price, and customer service in order to attract and retain customers. Continue Reading Below
Learn About Pure Competition
About Pure Competition
Pure competition is a term used to describe a market structure where there are many buyers and sellers, and no single buyer or seller has the ability to control the price. This creates a level playing field where prices are determined by supply and demand, and where companies must compete on factors such as quality, price, and customer service in order to attract and retain customers.
Think of it like a farmer's market where there are many different vendors selling similar products. Each vendor has to offer competitive prices, good quality products, and good customer service in order to stand out and attract customers. The customers have the choice to buy from whichever vendor they prefer, and the vendors have to respond to the changing needs and wants of the customers in order to stay in business.
In a pure competition market, everyone has the opportunity to succeed or fail based on their own actions and decisions, and consumers benefit from lower prices and better products as companies compete for their business.
