Question: The basic characteristics of pure competition are that it is based purely on market force and not on the firms ability/control, sellers and buyers can freely leave/enter the market, all product is similar to other market products, all people involved (buyers and sellers) seek to ultimately increase their profit by keeping production at a steady equilibrium.

The importance of understanding the pure competitive economic model to the manager of the real world firm is that this concept is the basis for promotion of efficient productivity. Efficient productivity is so important because it uses very few resources to produce the products. This is great because this allows other firms and consumers to utilize more material for other sources of production. This keeps the Average Total Cost at it's lowest for production. Each manager should be aware of this and assist in the support of this concept so that it is beneficial for the firm, as well as the people involved.