I. Competition as a process should not be confused with pure competition, a model of industrial structure. Competition as a process implies rivalry. Rival firms use quality, style, location, advertising, and price to convince consumers that they are offering a better deal. On the other hand, pure competition is a model of industrial structure that assumes the presence of a large number of small (relative to the total market) firms, each producing a homogeneous product in a market for which there is complete freedom of entry and exit.