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
Famous quotes containing the words perfect and/or competition:
“Grammar is a tricky, inconsistent thing. Being the backbone of speech and writing, it should, we think, be eminently logical, make perfect sense, like the human skeleton. But, of course, the skeleton is arbitrary, too. Why twelve pairs of ribs rather than eleven or thirteen? Why thirty-two teeth? It has something to do with evolution and functionalismbut only sometimes, not always. So there are aspects of grammar that make good, logical sense, and others that do not.”
—John Simon (b. 1925)
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—Madeleine [Blair], U.S. prostitute and madam. Madeleine, ch. 5 (1919)