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:
“So much of our lives is given over to the consideration of our imperfections that there is no time to improve our imaginary virtues. The truth is we only perfect our vices, and man is a worse creature when he dies than he was when he was born.”
—Edward Dahlberg (1900–1977)
“Such joint ownership creates a place where mothers can “father” and fathers can “mother.” It does not encourage mothers and fathers to compete with one another for “first- place parent.” Such competition is not especially good for marriage and furthermore drives kids nuts.”
—Kyle D. Pruett (20th century)