Perfect Competition
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In economic theory, perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities or some financial assets, may approximate the concept. Perfect competition serves as a benchmark against which to measure real-life and imperfectly competitive markets.
Read more about Perfect Competition: Basic Structural Characteristics, Approaches and Conditions, Results, The Shutdown Point, Short-run Supply Curve, Examples, Criticisms, Equilibrium in Perfect Competition
Other articles related to "competition, perfect competition, perfect":
... The natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion indeed, but for any considerable time together ... will sell a lesser quantity of goods at a higher price than would companies by perfect competition ... than the total surplus obtained by consumers by perfect competition ...
... The flaw in considering the stock exchange as an example of Perfect Competition is the fact that large institutional investors (e.g ... software works along lines that approximate perfect competition as well ... food, in addition to consumers/sellers possessing perfect information of the product in question ...
... Equilibrium in perfect competition is the point where market demands will be equal to market supply ... the long run, both demand and supply of a product will affect the equilibrium in perfect competition ...
... In economics, a perfect market is defined by several conditions, collectively called perfect competition ... Among these conditions are Perfect market information No participant with market power to set prices Non intervention by governments No barriers to ... On the assumption of Perfect Competition, and some technical assumptions about the shapes of supply and demand curves, it is possible to prove that a market will ...
Famous quotes containing the words competition and/or perfect:
“Knowledge in the form of an informational commodity indispensable to productive power is already, and will continue to be, a major—perhaps the major—stake in the worldwide competition for power. It is conceivable that the nation-states will one day fight for control of information, just as they battled in the past for control over territory, and afterwards for control over access to and exploitation of raw materials and cheap labor.”
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