Perfect Competition
| Economics |
|---|
| Economies by country |
| General categories |
| Microeconomics · Macroeconomics History of economic thought Methodology · Heterodox approaches |
| Technical methods |
| Mathematical · Econometrics Experimental · National accounting |
| Fields and subfields |
| Behavioral · Cultural · Evolutionary Growth · Development · History International · Economic systems Monetary and Financial economics Public and Welfare economics Health · Education · Welfare Population · Labour · Personnel Managerial · Computational Business · Information · Game theory Industrial organization · Law Agricultural · Natural resource Environmental · Ecological Urban · Rural · Regional · Geography |
| Lists |
| Economists · Journals · Publications Categories · Index · Outline |
| The economy: concept and history |
| Business and economics portal |
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:
“On the earth the broken arcs; in the heaven a perfect round.”
—Robert Browning (1812–1889)
“So long as the system of competition in the production and exchange of the means of life goes on, the degradation of the arts will go on; and if that system is to last for ever, then art is doomed, and will surely die; that is to say, civilization will die.”
—William Morris (1834–1896)