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:
“And then at last our bliss
Full and perfect is,
But now begins; for from this happy day
The old Dragon underground,
In straiter limits bound,
Not half so far casts his usurped sway,
And, wroth to see his kingdom fail,
Swinges the scaly horror of his folded tail.”
—John Milton (16081674)
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—Madeleine [Blair], U.S. prostitute and madam. Madeleine, ch. 5 (1919)