Perfect competition

Perfect competition is a model in economic theory. It describes a hypothetical market form in which no producer or consumer has the market power to influence prices in the market. This would lead to an outcome which is efficient, according to the standard definition in economics (Pareto efficiency). The analysis of perfectly competitive markets provides the foundation of the theory of supply and demand.

Related Topics:
Model - Economic - Theory - Market form - Market power - Pareto efficiency - Supply and demand

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