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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Perfect competition  

Definition 1.

n idealized market environment in which every market participant is too small to affect the market price by acting on its own.
 

Definition 2.

Market in which no participant can influence prices. Characterized by a free flow of information, no barriers to entry, and a large number of buyers and sellers.
 

Definition 3.

A market structure in which:1. All firms sell an identical product.2. All firms are price takers.3. All firms have a relatively small market share. 4. Buyers know the nature of the product being sold and the prices charged by each firm.5. The industry is characterized by freedom of entry and exit.
 
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