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:
“We say justly that the weak person is flat, for, like all flat substances, he does not stand in the direction of his strength, that is, on his edge, but affords a convenient surface to put upon. He slides all the way through life.... But the brave man is a perfect sphere, which cannot fall on its flat side and is equally strong every way.”
—Henry David Thoreau (1817–1862)
“The praise of ancient authors proceeds not from the reverence of the dead, but from the competition and mutual envy of the living.”
—Thomas Hobbes (1588–1679)