|Vital articles: Level 4 / Society|
I was hoping to find information on behavior of the firm in a perfectly competitive market, particularly w.r.t. costs and revenues. This is a topic I have had great difficulty integrating into my consciousness using standard textbooks on economics. I'm sure a Wikipedia article covering the same subject matter, if one were to exist, would be much more enlightening!
I have removed:
Large pension funds, mutual funds and banks are not small actors without market power.
However I agree that these markets are closer to perfect competition than most. mydogategodshat 17:55, 18 Jan 2004 (UTC)
Hi Bluemoose, do you mean by "set by firms" that the firm's marginal cost will be the price? If so, I still think there is a better way to say it, becuase the monopolist "sets the price", not the small seller in a competitive market. Mgw 18:58, 22 Apr 2005 (UTC) ---
This article really needs a diagram to show perfect competition. I'll try and find one, but I'm not really sure what's copyright and whats not. It's possible to draw one, but you'd probably need a reasonably sophisticated program that wouldn't get scared when you tried to draw curves. Thanks Inebriatedonkey 28 June 2005 08:00 (UTC)
I've added a clarification concerning the necessary conditions for a Market that is not significantly different from a Competitive Market. This can be found in the Monopoly profit area. — Preceding unsigned comment added by Mgmwki (talk • contribs) 03:07, 20 April 2019 (UTC)
Under "Idealizing conditions of perfect competition", there's an sentence "If the cost of changing a firm's manufacturing process to produce the substitute is also relatively "immaterial" in relationship to the firm's overall profit and cost, this is sufficient to ensure that an economic situation isn't significantly different from a perfectly competitive economic market." The word "immaterial" is linked to point to page https://en.wikipedia.org/wiki/Generally_Accepted_Auditing_Standards which in turn doesn't contain anything relevant content. I wonder whether te whole word "immaterial" is misplaced and should be "low" or something like that. 220.127.116.11 (talk) 10:04, 10 February 2022 (UTC) R
World map of GDP?
What has the article's image about the distribution of the world's GDP to do with perfect competition? It's barely related at all. I suggest to remove or replace the map with something more fitting.
Issues with sources
@CrownlessNuance: Thanks for adding sources for the examples of perfect competition. Can you please clarify where the article about farmer markets says anything about the perfect competition? The abstract seems to contradict it:
|“||A classic oligopoly/oligopsony model is developed to assess the degree of price transmission in a two‐stage farmer–retailer supply chain. A simulation experiment based on data of the Dutch ware potato sector illustrates how price transmission may become imperfect and asymmetric as a consequence of retailer oligopsony power in the sense that farm price decreases are only partially passed on to consumers whereas farm price increases are more than fully transmitted. Oligopoly power by farmers to level their bargaining power vis‐à‐vis the retailers may even make the degree of price transmission worse.||”|
The article about supermarkets also explicitly says that "[o]ur simple model can be viewed as a slight generalization of the Bertrand model that implies supermarkets behave as imperfect competitors."
@CrownlessNuance: The new sources have some issues. The supermarkets article says "[t]he findings of this paper show that supermarket chains in Dallas-Fort Worth market exercise market power in setting the retail price for fluid milk." Market power in incompatible with perfect competition. Also this article makes no attempt to generalise its findings.
This article is about dairy farms and not farmer markets which makes it irrelevant. Moreover, it says "[t]he primary analysis of the data has showed that the reported data mismatched the theoretical model of the perfect competition." Alaexis¿question? 14:00, 27 October 2020 (UTC)