Question

What are the features of pure competition?

Answer 1

Pure competition is a part and parcel of perfect competition. According to Chamberlin "a market becomes pure when monopoly is kept away".
Pure competition has following conditions of perfect competition.
(1) Large number of sellers
(2) Large number of buyers
(3) Homogeneous product is sold in the market
(4) Free entry and exit of buyers and sellers
(5) Single price is determined by the market forces of demand and supply, and this price prevails.