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Perfect competition

   Also found in: Dictionary/thesaurus, Wikipedia 0.02 sec.
Perfect competition
An idealized market environment in which every market participant is too small to affect the market price by acting on its own.


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But all is not lost and the good thing is, selling and trading all occurs within a market model that shares an almost perfect competition (and sometimes zero value) model.
There are so many good things about the Forex market, it is liquid, it has a zero sum game, its over the counter, it exists in a free market environment, its about as close to a perfect competition zone as you can get and it is one of the most liquid markets in the world.
In the perfect competition and private monopoly cases, we assume that total taxes collected are redistributed back to the consumers in the form of a lump-sum transfer T.
 
 
 
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