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:
“As the age of television progresses the Reagans will be the rule, not the exception. To be perfect for television is all a President has to be these days.”
—Gore Vidal (b. 1925)
“Every sect is a moral check on its neighbour. Competition is as wholesome in religion as in commerce.”
—Walter Savage Landor (1775–1864)