01-27-2025, 05:55 PM
Perfect competition market in economics is a theoretical market structure where numerous small firms sell identical products, no single firm can influence market prices, and there is free entry and exit, ensuring optimal allocation of resources. Jaro Education explains that this model represents the ideal scenario of efficiency, where all participants have perfect knowledge of prices and products, and factors like profit maximization and zero economic profit in the long run govern the dynamics. While rare in real-world markets, understanding this concept through Jaro Education provides a foundation for analyzing other market structures and economic principles.