Perfect Competition Market
(Redirected from Perfect competition)
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A Perfect Competition Market is an economic market that ...
- AKA: Pure Competition.
- Costner-Example(s):
- See: Economic Theory, Market Power, Homogeneous Products, Auction, Commodity, Pareto Efficient.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/perfect_competition Retrieved:2014-11-30.
- In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities (especially decentralised digital commodities such as Bitcoin) or some financial assets, may approximate the concept. As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures.
- http://en.wikipedia.org/wiki/Marginal_revenue_productivity_theory_of_wages#Marginal_Revenue_Product_in_a_perfectly_competitive_market
- Under perfect competition, marginal revenue product is equal to marginal physical product (extra unit produced as a result of a new employment) multiplied by price.
- (Thiel & Masters, 2014) ⇒ Peter Thiel, and Blake Masters. (2014). “Zero to One: Notes on Startups, Or How to Build the Future." Crown Publishing Group. ISBN:9780804139304
- QUOTE: Americans mythologize competition and credit it with saving us from socialist bread lines. Actually, capitalism and competition are opposites. Capitalism is premised on the accumulation of capital, but under perfect competition all profits get competed away. The lesson for entrepreneurs is clear: if you want to create and capture lasting value, don’t build an undifferentiated commodity business.