Perfect competition is a theoretical model with many buyers and sellers offering identical products. In this model, firms cannot influence prices and make zero long-term profit due to free entry and ...

Richard McKenzie is correct that, were real-world markets what economists call “perfectly competitive,” the instantaneous market entry that is a key feature of this model ensures that consumers would ...

Discover how competitive equilibrium balances supply and demand in markets, maximizing economic efficiency for profit-driven producers and value-seeking consumers.