3 concepts
Definition of Perfect Competition
Perfect competition is a market structure that leads to the Pareto-efficient allocation of economic resources.
Conditions of Perfect Competition
A firm in a perfectly competitive market may generate a profit in the short-run, but in the long-run it will have economic profits of zero.
The Demand Curve in Perfect Competition
A perfectly competitive firm faces a demand curve is a horizontal line equal to the equilibrium price of the entire market.