Entity: PERFECT-COMPETITION
Perfect competition is a market structure where competition is at its greatest possible level, characterized by a homogeneous product, freedom of entry, and a large number of buyers and sellers.
PERFECT-COMPETITION
Etymology
The term 'perfect competition' originated from the concept of a market structure where competition is at its peak.
Definition
Perfect competition is an economic 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.
Historical Context
Perfect competition has been a benchmark or ideal type to which real-life market structures can be compared. It is theoretically the opposite of a monopoly, where only a single firm supplies a good or service.
Cultural Significance
Perfect competition signifies a market structure where competition is at its greatest possible level, fostering fair competition among sellers and buyers.
Related Concepts
Other related concepts include monopoly, oligopoly, and monopolistic competition, each representing different market structures with varying levels of competition.
See Also
An economic 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.