Perfect Competition

Perfect Competition

Perfect competition is a situation in which no firm in a market is dominant. Without losing all of it's customers a firm cannot raise it's prices. A firm cannot lower it's prices without all firms doing the same. There are many firms selling the same product in this type of market. A firm is able to sell as many goods as it wants as long as the price is at the equilibrium price set by the market. A competetive market is the textile industry where many firms are selling the same fabric and wholesale prices are similar. [JP] {EC}