perfect market JUST WRITTEN FOR YOU
/ˈpɜːrfɪkt ˈmɑːrkɪt/ · per·fect·mar·ket
noun
- a hypothetical market with perfect competition, numerous buyers and sellers, and perfect information In a perfect market, prices would reflect the true value of goods and services, and resources would be allocated efficiently.
- a market that is considered ideal for the exchange of goods and services, with no external influences or imperfections The concept of a perfect market is often used as a benchmark to evaluate the efficiency of real-world markets.
Did you know? The concept of a perfect market was first introduced by economist Adam Smith in his book 'The Wealth of Nations', where he described it as a market with 'perfect liberty' and 'free competition'. This idea has since become a fundamental concept in economics, used to analyze and understand the behavior of real-world markets.