perfect competition |
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Definition
Theoretical free-market situation where (1) buyers and sellers are too numerous and too small to have any degree of individual control over prices, (2) all buyers and sellers seek to maximize their profit (income), (3) buyers and seller can freely enter or leave the market, (4) all buyers and sellers have access to information regarding availability, prices, and quality of goods being traded, and (5) all goods of a particular nature are homogeneous, hence substitutable for one another. Also called perfect market or pure competition.
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perfect competition is in the Advertising, Marketing, & Sales, Economics, Politics, & Society and Entrepreneurship, Management, & Leadership subjects.
perfect competition appears in the definitions of the following terms: pure competition, monopolistic competition, normal profit, pure rate of interest, oligopoly, normal price, market power, market structure, perfect market and imperfect competition
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