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:
“O cloud-pale eyelids, dream-dimmed eyes,
The poets labouring all their days
To build a perfect beauty in rhyme
Are overthrown by a woman’s gaze....”
—William Butler Yeats (1865–1939)
“Competition has been shown to be useful up to a certain point and no further, but cooperation, which is the thing we must strive for today, begins where competition leaves off.”
—Franklin D. Roosevelt (1882–1945)