perfect competition


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Related to perfect competition: Monopolistic competition, oligopoly

perfect competition

n
(Economics) economics a market situation in which there exists a homogeneous product, freedom of entry, and a large number of buyers and sellers none of whom individually can affect price
References in periodicals archive ?
commit a simple error when they pose perfect competition as the only version of effective competition.
I then find that the increase in consumer welfare is only 85 percent as high as in the perfect competition case, so that the CPI for cereal still would be too high by about 20 percent.
However, perfect competition still prevails in both output and input markets.
The Chicago approach to industrial organization represents an amalgam of traditional price theory, which takes perfect competition as a normative ideal, and market rivalry theories.
Although the latter model is not entirely accurate, it is still much closer to reality than the perfect competition model.
Growth does not take place with perfect competition, equity and justice seems to play a major role in growth of a country,' he added.
More importantly, however, the notions of "monopoly," and perfect competition as well as the causal relationship between market structure and market outcomes is an extension of the neoclassical quantity theory of competition.
The main economic advantages of SMEs development include encouraging perfect competition and fair distribution of wealth.
He considers the advent of the stock ticker which recorded yet also performatively constructed the market, and its failure to override local stock exchanges to provide full transparency and enable perfect competition.
Perfect competition attracts a large amount of international soft drink giants into Chinese market.
Haynes (2002) believes that the author correctly asserts that the pre-requisite for the comparative advantage to work in the light of theory is the prevalence of the perfect competition with minimal intervention in the market.