To further illustrate pure competition, let's imagine that you are purchasing assorted color latex balloons. You go to your local party store where you find several different brands of balloons available. There are five different brands of 10-inch assorted color balloons, and they are all priced at 99 cents per package.
Because you have no preference for one brand over another, and the packaging is generic on each brand, you randomly select a package. Because there is not a significant difference in latex balloons, and they are all the same size and price, you are not concerned about which package you buy. They all are essentially the same. In this example, the balloon manufacturers are operating under pure competition because one company does not have an edge over another. Generic products, like balloons, can illustrate pure competition. All the prices are equal, and in the end, the balloons are the same.