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Perfect competition

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In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In theoretical models where conditions of perfect competition hold, it has been 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.

Perfect competition - Wikipedia Jump to content From Wikipedia, the free encyclopedia Market structure in which firms are price takers for a homogeneous product Part of a series on Economics Outline Index Glossary Economists Principles of Economics Tools and methodology Economic theory Mathematical modeling Game theory Rational choice Cognitive science ( Behavioral ) Economic equilibrium Empirical methods Experimental Econometrics Time series Spatial Causal inference Quasi-experiments Prescriptive and policy Welfare analysis Social choice theory Rational choice theory Cost–benefit analysis Bra

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