Pure competition is a term that describes a market that has a broad range of competitors who are selling the same products. It is often referred to as perfect competition. Here are some characteristics that define a pure competition.
pure competition has pricing power within the market. There is only one supplier who has significant market power and determines the price of its product. A pure competition faces little competition because of high barriers to entry, such as high initial costs, or because the company has acquired significant market influence through network effects.