Perfect competition - Revision history

Vipul: /* Analysis of the market as a whole (focusing on the supply side, treating demand as exogenous) */

2017-04-15T18:46:09Z

Analysis of the market as a whole (focusing on the supply side, treating demand as exogenous)

← Older revision		Revision as of 18:46, 15 April 2017
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	* [[Determination of price and quantity supplied in perfectly competitive market in the short run treating demand as exogenous]]		* [[Determination of price and quantity supplied in perfectly competitive market in the short run treating demand as exogenous]]
			* [[Determination of price and quantity supplied in perfectly competitive market in the long run treating demand as exogenous]]

Vipul at 18:27, 15 April 2017

2017-04-15T18:27:42Z

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 * There is a large number of sellers, and every individual seller is small (in terms of production capacity) relative to the totality of sellers.
 * The only axis of competition between sellers is price. In other words, a buyer deciding between two sellers would choose the one with lower price. In other words, there is no [[product differentiation]].
 === Perfect competition among buyers ===
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 * There is a large number of buyers, and every individual buyer is small (in terms of the maximum the buyer can buy) relative to the totality of buyers.
 * Sellers are agnostic between buyers, i.e., given a choice between two different buyers, the one who offers the higher price is more attractive to the seller. Note that this is the analogous condition to the absence of product differentiation between sellers; however, it cannot be labeled product differentiation as the buyer does not create the product.
 === Perfect competition among both buyers and sellers ===
 '''Perfect competition''' among both buyers and sellers refers to a situation where there is perfect competition among buyers and perfect competition among sellers.
 === Note on use of the term "perfect competition" ===
 When the term "perfect competition" is used without qualification, it generally refers either to perfect competition among sellers, or to perfect competition among both buyers and sellers.

Vipul at 18:16, 15 April 2017

2017-04-15T18:16:04Z

← Older revision		Revision as of 18:16, 15 April 2017
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	'''Perfect competition''' among both buyers and sellers refers to a situation where there is perfect competition among buyers and perfect competition among sellers.		'''Perfect competition''' among both buyers and sellers refers to a situation where there is perfect competition among buyers and perfect competition among sellers.

			=== Note on use of the term "perfect competition" ===

			When the term "perfect competition" is used without qualification, it generally refers either to perfect competition among sellers, or to perfect competition among both buyers and sellers.

Vipul: Created page with "{{market structure}} == Definition == === Perfect competition among sellers === '''Perfect competition''' among sellers refers to a market structure where: * There is a la..."

2017-04-15T18:13:31Z

Created page with "{{market structure}} == Definition == === Perfect competition among sellers === '''Perfect competition''' among sellers refers to a market structure where: * There is a la..."

New page

{{market structure}}

== Definition ==

=== Perfect competition among sellers ===

'''Perfect competition''' among sellers refers to a market structure where:

* There is a large number of sellers, and every individual seller is small (in terms of production capacity) relative to the totality of sellers.
* The only axis of competition between sellers is price. In other words, a buyer deciding between two sellers would choose the one with lower price. In other words, there is no [[product differentiation]].

=== Perfect competition among buyers ===

'''Perfect competition''' among buyers refers to a market structure where:

* There is a large number of buyers, and every individual buyer is small (in terms of the maximum the buyer can buy) relative to the totality of buyers.
* Sellers are agnostic between buyers, i.e., given a choice between two different buyers, the one who offers the higher price is more attractive to the seller. Note that this is the analogous condition to the absence of product differentiation between sellers; however, it cannot be labeled product differentiation as the buyer does not create the product.

=== Perfect competition among both buyers and sellers ===

'''Perfect competition''' among both buyers and sellers refers to a situation where there is perfect competition among buyers and perfect competition among sellers.