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:
“Men were not intended to work with the accuracy of tools, to be precise and perfect in all their actions.”
—John Ruskin (1819–1900)
“Wearing overalls on weekdays, painting somebody else’s house to earn money? You’re working class. Wearing overalls at weekends, painting your own house to save money? You’re middle class.”
—Lawrence Sutton, British prizewinner in competition in Sunday Correspondent (London)