External link to The Theory of Perfect Competition

The Theory of Perfect Competition

Abstract The theory of perfect competition is a theoretical structure of market that is principally used as the benchmark against which some other real-life structures of markets are measured. Several economists have argued that the theory is not perfect itself and cannot exist or be applied in the real world. Perfect competition can only exist in a world where time is not moving, and that […]

External link to Perfect Competition

Perfect Competition

Perfect Competition 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 […]

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