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A situation in which perfect competition exists because of the existence of many small companies. Because there are so many companies, no one is able to dominate the market or set prices. This results in low profits but also low cost for clients or consumers. Many believe atomistic competition to be ideal, though it rarely exists in practice.
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atomistic competitionsee PERFECT COMPETITION.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005