Today’s business world has different kinds of industries. However, an economic evaluation of the extraordinary companies inside a financial system is simplified by way of first segregating them into specific models based totally on the amount of competition within the marketplace. And we explained the difference between the Pure Competition and Oligopolistic Competition.

1. Presented by: Tayyaba Latif

2. Earliest kind of competition
Large number of buyers and sellers
Products are homogenous
Freedom of entry and exists of buyer and
sellers
Exceptionally small competitors

3. In pure competition
1. Market expenses are determined by means of
consumer demand
2. No supplier has any influence over the
marketplace price
3. Suppliers are price takers
4. Low barrier of entry into the business

4. Large number of buyers and sellers
price is decided by the company
company is a price taker

5. Products are homogeneous
No single supplier’s product is preferred to
that of every other seller
Products are consequently indistinguishable
from each other
Firm can promote product at the best price

6. No regulations as such on the entry and go out
of the firms

7. Competitive market
Large number of distinctly small firms
No single firm can influence the market price
The equilibrium price inside the market falls,
the equilibrium quantity will upward thrust.

8.  In the long term, manufacturers are able to
alter their scale of plant
 Relative ease of exit and access from the
marketplace
 Longer-term pure competition is that the
demand confronted with the help of the
company is perfectly flexible on the
marketplace price.

9. Few companies
Promotion of products
1. Homogeneous
2. Differentiated
Supplier influences the conduct of alternative
companies
Some fantastically big and few smaller
competitors

10. Few firms
Big businesses
Exact wide variety of firms is undefined
Intense competition

11. Barriers to entry
Example: patents, licenses, manage over crucial
raw substances

12. Keep away from price competition
 Non-price methods
1. Advertising
2. After income offerings
3. Warranties

13. lot of interdependence amongst firms
For example: firm takes under consideration the
action and response of its competing firms at
the same time as figuring out its price and
production choices.

14. The products are
1. homogeneous
2. differentiated.

15. Interdependence among companies
Promoting costs are particularly vital for
competing

16. Companies want to act independently
For example : the firms can compete or collude
with different companies which could cause
distinctive pricing situations.

17. isn't always feasible to determine the demand
curve of a company
large interdependence among rivals
For example: Competing firms can react in
unique methods whilst company adjustments
its price and that makes the call for curve
indeterminate.

18. Stable prices
Price wars
Approval for higher operating expense

19. Thank you