Definition of perfect competition in US English:

perfect competition


  • The situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers.

    • ‘It is easy to show that no real market has perfect competition.’
    • ‘Under circumstances of perfect competition, no single buyer or seller can dominate the prices to be paid.’
    • ‘Since the economics of the time operated almost entirely in terms of perfect competition, the question was: Why in competitive markets would there be such a thing as unemployment?’
    • ‘In the spirit of perfect competition between economic pundits I suggest that you need fewer answers.’
    • ‘States, he suggests, can be compared to firms operating in a situation of perfect competition.’
    • ‘Oligopoly lies somewhere between the two extremes of perfect competition and pure monopoly.’
    • ‘His numbers implied that even though the structure of the economy did not look like perfect competition, the outcome was virtually the same as if perfect competition had prevailed.’
    • ‘In the case of perfect competition where there is no market power, a firm's supply changes will have no effect on the price, and the residual demand is perfectly elastic.’
    • ‘In his book, he seeks to explain the persistent difference between the zero profits predicted as a result of perfect competition in economic theory and the actual positive or negative profits found in reality.’
    • ‘The assumptions of perfect competition with perfectly inelastic factor supplies do certainly limit the analysis; however, they do provide a convenient and useful starting point for such analysis.’
    • ‘However, to pass judgment on existing markets based on how closely they approach a state of perfect competition is to egregiously confuse the map and the territory.’
    • ‘His static conception of perfect competition fails to appreciate the dynamic nature of markets.’
    • ‘Under the assumptions of pure and perfect competition, with no frictions or imperfections, they promulgated the capital structure irrelevance proposition and the dividend irrelevance proposition.’
    • ‘The basic thrust of all these arguments is to deny the existence of perfect competition in product as well as in labor markets, and thus the failure of markets to adjust quickly enough to prevent involuntary unemployment.’
    • ‘First, it assumes genuinely free market conditions, with perfect competition and where optimal growth occurs.’
    • ‘Note that slightly over half of these respondents indicated that they had used classroom economic experiments to demonstrate the concept of price discovery and market clearing in perfect competition.’
    • ‘It is often said that in perfect competition there are no profits (something we may be seeing with respect to commerce on the internet which comes closer to the conditions of perfect competition than any other market we have seen).’
    • ‘A ‘second best,’ such as lowering import duties without perfect competition, may be no better than a third-best option.’
    • ‘He also considered conditions for equilibrium with monopoly, duopoly and perfect competition.’
    • ‘He implicitly assumed perfect competition in both factor and commodity markets, a given supply of money and perfectly inelastic factor supplies.’