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:
“People understand God as the expression of the most lofty morality. Maybe He needs only perfect people.”
—Anton Pavlovich Chekhov (1860–1904)
“Sisters define their rivalry in terms of competition for the gold cup of parental love. It is never perceived as a cup which runneth over, rather a finite vessel from which the more one sister drinks, the less is left for the others.”
—Elizabeth Fishel (20th century)