Explanation:
Pure Competition is one of the several market structures like monopoly, oligopoly, etc. Pure competition is called the Perfect Competition. This is the market structure in which there are large number of competitors who are selling the same product in the market.
- Pure Competition is distinctive because of its following characteristics:
- In this structure, no seller can sell better or can't offer something different than the other competitor. Competitors have identical products.
- All sellers are equal, no seller has an edge over the other.
- New companies can easily enter or exit through the market.
- The price of the product offered by the companies totally depends upon the willingness of the customers. It solely depends upon the customers' will.
So all such characteristics make a pure or perfect competition distinctive.
Answer:
The market structure of pure competition is distinctive because it is the simplest to run.
Explanation:
A pure market structure is composed of many firms that produce almost the same products. The market assumes that it is in a state of equilibrium where all firms sale similar commodities with equal prices. But the reality is each firm has its preference in terms of production and the firms should not be influenced by the market price.
The one decision that market competition can make is about the price in the market and the product cost not that of individual firms.
