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प्रश्न
State whether the following statement is True or False with reason:
Perfect competition means pure competition.
Answer with reasons whether you agree or disagree with the following statement:
Perfect competition means monopolistic competition.
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उत्तर
False, perfect competition does not mean pure competition.
Explanation:
The following table shows the difference between the two kinds of market forms.
| Perfect Competition | Pure Competition |
| Factors of production are perfectly mobile. | Factors of production are immobile and cannot move from one industry to another. |
| Buyers and sellers have perfect knowledge about the prevailing market conditions. | Buyers and sellers have imperfect knowledge about the prevailing market conditions. |
| The characteristics of perfect competition are quite stringent, hence the existence of this market structure is a myth. | The characteristics of this market structure are comparatively liberal, hence, can be found in the real world. |
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