2007-01-24 23:17:24 · 9 answers · asked by james s 1 in Social Science ➔ Economics
A market structure in which there are many firms; each firm sells an identical product; there are many buyers; there are no restrictions on entry into the industry; firms in the industry have no advantage over potential new entrants; and firms and buyers are completely informed about the price of each firm’s product.
2007-01-24 23:20:55 · answer #1 · answered by tickTickTICK 3 · 1⤊ 0⤋
Define Perfect Competition
2016-09-29 22:22:14 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Perfect competition is an economic model that describes a hypothetical market form in which no producer or consumer has the market power to influence prices. According to the standard economical definition of efficiency (Pareto efficiency), perfect competition would lead to a completely efficient outcome. The analysis of perfectly competitive markets provides the foundation of the theory of supply and demand.
2007-01-24 23:23:03 · answer #3 · answered by BARROWMAN 6 · 0⤊ 0⤋
A utopian condition where all factors of production are the same and especially that there is perfect information.
Therefore, to everyone who produces, the costs are indentical.
On the other hand, everyone who is buying knows the price of every producer.
Therefore no producer can charge more or less than the equilibrium price, the price at which every producer just breaks even in economic terms.
2007-01-25 14:13:20 · answer #4 · answered by ekonomix 5 · 0⤊ 1⤋
best definition is and the example. Gas Stations are Perfect comp. "We all know" what price they are seling gas for because of thier signs.
2007-01-25 02:02:16 · answer #5 · answered by Adam 4 · 0⤊ 0⤋
thousands of firms selling the same product at the same price operating in allocative efficency where marginal cost equals average revenue
2007-01-26 07:09:10 · answer #6 · answered by supremecritic 4 · 0⤊ 0⤋
All buyers have access to all sellers and vice versa.
2007-01-25 07:15:06 · answer #7 · answered by Veritas 7 · 0⤊ 0⤋
Irresistable force vs immovable object.
2007-01-24 23:22:58 · answer #8 · answered by Del Piero 10 7 · 0⤊ 2⤋
One that you win!
2007-01-24 23:21:10 · answer #9 · answered by Sunshine Smile 6 · 1⤊ 1⤋