perfect competition

(redirected from Perfectly competitive)
Also found in: Financial, Encyclopedia.

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 ?
He added that GCC is a perfectly competitive region that has integrated excellence into all its sectors and working patters and has truly come out as a thriving and sustaining nation in terms of technology.
"The entire European market is perfectly competitive. This is an indicator which can very easily show us whether any market-distorting principles are at play on the Bulgarian market," Dobrev said.
The second important conclusion of strategic factor market theory is that strategic factor markets are not always perfectly competitive and that, in fact, factor market imperfections fall into two large categories: asymmetric expectations about the future value of a resource and luck.
Consumer surplus asymptotically approaches the perfectly competitive market values from below as n [right arrow] [infinity].
The existence of a neoclassical perfectly competitive labor market is a logical impossibility (the perfectly competitive labor market model is intrinsically flawed as a theoretical construct).
Michele Boldrin and David Levine have published a series of academic papers making this argument, beginning with "Perfectly Competitive Innovation," a paper first published online in 1997 and updated as late as 2003.
We also assume that capital, land, and labor can be allocated freely across firms every period and all markets are perfectly competitive. Under these assumptions, the competitive equilibrium achieves an allocation that maximizes the weighted average of all individual households' expected utilities with constant weights [[lambda].sub.h] given the resource constraints (Negishi 1960).
They cover introductory materials, consumer theory, production and cost theory, perfectly competitive markets, monopoly and monopsony, imperfectly competitive markets and strategic behavior, and special topics.
In this sense, arises the question in what ways a monopolistic behavior may differ from a perfectly competitive behavior in the mining industry.
Assuming a perfectly competitive health insurance market, the consumer maximizes this function over the set of zero-profit insurance policies, yielding the optimal insurance plan choice.
We consider three scenarios in this analysis: 1) perfectly competitive merchants, 2) local monopoly merchants serving both card customers and cash customers, and 3) local monopoly merchants serving only card customers.
Of course, a monopoly would not restrict its output and elevate its price if it faced perfectly competitive market conditions.