Respuesta :
Pure Competition is a type of firm where there is no control over price by firms.
What is a Perfect Competition?
Pure competition is a market arrangement wherein various firms provide comparable items to buyers. A considerable number of similar commodities, a significant number of sellers who can quickly enter the market, and buyers who are well-informed about the firms and their products make an ideal atmosphere for this market model.
Pure competition and monopoly are two alternative market models that have certain characteristics but are fundamentally different. Companies in such market arrangements have equal cost and production functions and want to maximize their profit. Nonetheless, these two market models have certain distinguishing characteristics.
There are numerous firms that sell identical commodities to the market in pure competition. They have no impact on market prices since they are determined by total product supply and total product demand. Due to the vast number of vendors, it is hard for them to establish a universal agreement, thus they act individually.
When there is only one producer and numerous clients, a monopoly exists. A monopoly thrives in an environment devoid of economic rivalry and acceptable replacement products. The pricing is set by a single manufacturer.
A monopoly allows the firm that typically offers a unique product to establish any selling price. Sellers establish the price, including manufacturing costs and output, in order to make a large profit. Furthermore, monopolists might limit output in order to raise the selling price. Monopolists sell their items at a greater price but in smaller quantities.
Therefore, pure Competition is a type of firm where there is no control over price by firms.
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