Examples
In most industries, perfect competition doesn't exist as some firms will manage to establish an advantage, even in the most difficult of markets. Examples of markets that are close to perfect include food commodities and economy flights on competitive routes.Commodities
Perfect competition occurs where consumers view products and services as much the same such that they purchase on price alone. Goods that fall into this category are known as commodities. Producers commonly try to fight commoditization by offering premium quality. For example, a farmer who produces artisanal food that they market locally.| Overview: Perfect Competition | ||
Area | ||
Definition | A market that has no competitor with any advantage over another. | |
Examples | Agricultural commodities such as corn are close to perfect. In practice, producers may achieve a cost advantage or be able to differentiate their product. | |
Related Concepts | ||
