Perfect competition
From The Art and Popular Culture Encyclopedia
Related e |
Featured: |
In economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition. In theoretical models where conditions of perfect competition hold, it has been theoretically demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price. This equilibrium would be a Pareto optimum.
[edit]
See also
- Supply and demand
- Contestable market
- Effective competition
- Imperfect competition
- Monopolistic competition
- Microeconomics
- Bertrand competition
- Cournot competition
- Efficient-market hypothesis
Unless indicated otherwise, the text in this article is either based on Wikipedia article "Perfect competition" or another language Wikipedia page thereof used under the terms of the GNU Free Documentation License; or on research by Jahsonic and friends. See Art and Popular Culture's copyright notice.