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 ...

Buyers and sellers meet and at the right price all products are sold Three little words. Often that is all it takes to make one’s heart beat faster. “Liberty, equality, fraternity” captured the French ...

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 ...