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By | April 2013
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Perfect competition

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It has been suggested that Perfect market be merged into this article or section. (Discuss) Proposed since April 2012.

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In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities or some financial assets, may approximate the concept. Perfect competition serves as a benchmark against which to measure real-life and imperfectly competitive markets.

Contents
[hide] 1 Basic structural characteristics
2 Approaches and conditions
3 Results 3.1 Profit

4 The shutdown point
5 Short-run supply curve...
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