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By definition, pure competition (or perfect competition) is an idealized market environment in which every market participant is too small to affect the market price by acting on its own (Harvey, 2004). Agriculture is a good example of perfect competition in the U.S. economy. For example, the wheat produced on one farm is essentially the same as that produced on another (Ebert and Griffin, 2003, pg. 13). Another example would be the stock exchange. Anyone person may enter or exit the market at anytime and there are millions of buyers and sellers on any given day. The Internet has changed this market environment by adding new industries...
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