Distinguish between the following:
1. Perfect competition and Pure competition
Answer:
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Perfect Competition
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Pure Competition
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Factors of production are perfectly mobile.
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Factors of production are immobile and cannot move from one industry to another.
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Buyers and sellers have perfect knowledge about the prevailing market conditions.
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Buyers and sellers have imperfect knowledge about the prevailing market conditions.
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The characteristics of perfect competition are quite stringent, hence the existence of this market structure is a myth.
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The characteristics of this market structure are comparatively liberal, hence, can be found in the real world.
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