Perfect Competition Market Definition, Examples and Characteristics

ECONOMY, ACTIVELYSHARE.COM — Perfect competition market is one of the general terms in economics.

The definition of a perfectly competitive market is often interpreted as a purely competitive market. So what is a perfectly competitive market?

Definition of a perfect competitive market

A perfectly competitive market is a market in which there are many buyers and sellers. However, neither party can influence the price, because the price has been determined by the market itself (overall supply and demand).

In addition, economic actors in a perfectly competitive market also know the conditions and have information related to the market. There is no interference from the government in a perfectly competitive market.

Perfect competition market is said to be the most ideal type of market because it is considered capable of guaranteeing the realization of market efficiency.

In addition to the large number of sellers and buyers, the products sold in this type of perfect competition market are homogeneous.

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