Write short notes on the following:
2. Features of pure competition
Answer: Some of the features of pure competition are:
i. Large number of buyers and sellers: There exist large number of buyers and sellers in this kind of market.
ii. Homogeneous product: The products sold under pure competition is homogeneous which means they are same in respect of quality, colour, size etc.
iii. Free entry and exit of firms: The firms under pure competition are free to enter or exit the market. There is no legal restriction as such.
iv. Single price of the product: Under pure competition products are sold at a unified price i.e. there is no price discrimination.
