Pure Competition Essays

Pure Competition Essays-86
The following two examples help explain how pure competition could exist.If several gas stations exist within close proximity with each other and have matching prices, equal services, and sell relatively similar amounts of gas, they could be operating in a purely competitive market.

The following two examples help explain how pure competition could exist.If several gas stations exist within close proximity with each other and have matching prices, equal services, and sell relatively similar amounts of gas, they could be operating in a purely competitive market.

Milk, for example, is a product which is fairly similar across suppliers, available in almost every part of the world, is widely consumed and sells at consistent prices.

If, however, a large segment of producers were hit by drought or cattle disease, unaffected producers would have a larger measure of control over the market because demand would remain high, but supply would decrease.

In many markets there may be brief periods of pure competition.

But, most often, a given market will shift as the number of sellers and buyers fluctuates, leading to changes in production, demand and prices.

In pure competition, product prices are set by market demand, not by sellers.

Pure competition is an ideal economic scenario in which there are a large number of independent sellers and consumers, and the given product is in ready supply.

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The number of consumers purchasing apples remains rather stable over a long period of time, offering consistent sales to the sellers.

Pure competition is a market condition where the companies providing products offer the same features and price, making the difference between manufacturers minor, if not completely irrelevant.

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