What Is a Perfect Market?

Perfect market is also translated as perfect market. It is an economic term. In perfect market, resources are allocated at equilibrium prices. If the conditions of a perfect market are established, the equilibrium price will be equal to the marginal cost, and the seller will not generate excess profits.

Perfect market

Right!

Perfect market is also translated as perfect market. It is an economic term. In perfect market, resources are allocated at equilibrium prices. If the conditions of a perfect market are established, the equilibrium price will be equal to the marginal cost, and the seller will not generate excess profits.

Meeting the conditions of the Perfect market (J. Bertrand, 1823)

Commodity exchange must be homogeneous

Transaction price is determined by demand

No information asymmetry among traders

In a perfect market, the various elements are completely free to flow, and all kinds of information are rich and symmetrical, so the conclusions drawn are also perfect and reasonable.