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FORMS OF THE INDUSTRIAL ORGANIZATION
Forms of the Industrial Organization
University of Phoenix
Pure Competition April Vanek
Pure competition is characterized by a large number of firms, free entry and exit into the market, standardized products, and independent sellers in large national or international markets. Firms do not participate in non-price competition nor do they attempt to control product price. "That means that the individual competitive producer is at the mercy of the market" (Brue & McConnell, 2004, Ch 23). An example of a pure competitive business is Earthbound Farm. In its infancy, Earthbound Farm started as a backyard garden which demonstrates free and easy entry into the market, and standardized products. Over the last 22 years the company has grown its organic farms to more than 30,000 acres.
In a purely competitive structure, a single firm cannot impact pricing in the market because demand for its products is elastic. Thus, price can only be......
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Title: Industrial Organizations
Approximate Word Count: 1383
Approximate Pages: 6 (250 words per double-spaced page)
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