The term perfect competition refers to a theoretical market structure. Although perfect competition rarely occurs in real-world markets, it provides a useful model for explaini… See more

Perfect competition is a benchmark or ideal type to which real-life market structures can be compared. Perfect competition is theoretically the opposite of a monopoly, in which only … See more

Real-world competition differs from this ideal primarily because of differentiation in production, marketing, and selling. For example, the owner of a small organic products sh… See more

Many industries also have significant barriers to entry, such as high startup costs(as seen in the auto manufacturing industry) or … See more

Perfect competition is an idealized framework for a market economy. While it provides a convenient model for how an economy works, it is not always accurate and has sig… See more