Perfect competition

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High Quality Content by WIKIPEDIA articles! In neoclassical economics and microeconomics, perfect competition describes a market in which there are many small firms, all producing homogeneous goods. In the short term, such markets are productively inefficient as output will not occur where marginal cost is equal to average cost, but allocatively efficient, as output under perfect competition will always occur where marginal cost is equal to marginal revenue, and therefore where marginal cost equals average revenue. However, in the long term, such markets are both allocatively and productively efficient. In general a perfectly competitive market is characterized by the fact that no single firm has influence over the price of the product it sells. Because the conditions for perfect competition are very strict, there are few perfectly competitive markets.

Weitere Informationen

  • Allgemeine Informationen
    • GTIN 09786130342135
    • Editor Lambert M. Surhone, Miriam T. Timpledon, Susan F. Marseken
    • Sprache Englisch
    • Größe H220mm x B150mm x T5mm
    • Jahr 2010
    • EAN 9786130342135
    • Format Kartonierter Einband
    • ISBN 978-613-0-34213-5
    • Titel Perfect competition
    • Untertitel Neoclassical Economics, Microeconomics, Factor, Marginal Cost, General Equilibrium Theory, Marginal Revenue Productivity Theory of Wages
    • Gewicht 131g
    • Herausgeber VDM Verlag Dr. Müller e.K.
    • Anzahl Seiten 76
    • Genre Wirtschaft

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