If there are many firms in an industry, then it must be a purely competitive market.

Purely Competitive Market

An idealized market structure featuring a large number of small firms, a homogeneous product, and no barriers to entry or exit, ensuring competitive price levels.

Firms

Firms refer to business entities or organizations that produce goods or provide services with the aim of making a profit.

Industry

A sector of the economy that is made up of manufacturing, production, or provision of services within a specific domain of activity or expertise.