Search

Nearby Terms

per head
perfect competition
perform

perfect competition

definition

An idealized market structure in which there are large numbers of both buyers and sellers, all of them small, so that they act as price takers. Perfect competition also assumes homogeneous products, free entryand exit, and complete information. Most international trade theory prior to the New Trade Theory assumed perfect competition.

Related Terms

 • pure competition  • market structure  • marketing  • comparative advantage