Pure and perfect competition has never existed in the real world, however - it's a theoretical modeling tool to remove complexities when describing interactions

Pure and perfect competition has never existed in the real world, however - it's a theoretical modeling tool to remove complexities when describing interactions. The real world has to deal with asymmetric information and product differentiation. In other words, price is not the only signal driving supply and demand. It also has to deal with the dynamic disequilibrium that is caused by entrepreneurship and innovation, which "creatively destroys" previous markets in favor of new ones. It is this process that is the source of all profit and economic growth, at least according to Schumpeter.