Maharashtra State BoardHSC Arts 12th Board Exam
Advertisement Remove all ads

State Whether the Following Statement is True Or False with Reason: Perfect Competition Means Pure Competition. - Economics

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. 

Advertisement Remove all ads

Solution

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.
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads

Video TutorialsVIEW ALL [2]

Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×