MODEL OF PERFECT COMPETITION IN THEORY AND PRACTICE
Keywords:
Model of perfect competition, market structures, monopoly policyAbstract
Achieving the desired economic welfare is a challenge in the presence of imperfect market structures. Non-competitive markets appear in various forms, and the effects of these market conditions influence production efficiency and resource productivity. The research focuses on the Model of Perfect Competition, both in theory and in practice, with the aim of highlighting the need to reduce the negative impacts of market imperfections.
Competition is a dynamic process dependent on various factors, such as global economic flows, the number of producers and consumers, supply structure, production methods, technological innovations, as well as labor force organization and sales activities in the market. In the context of global competition and the constant increase in rivalry, it is crucial for countries to position themselves effectively and maintain their presence in the market in order to achieve economic success. Competition is a fundamental condition for the functioning of a free market; without it, there would be no market supply, and the success of market competition would not lead to the achievement of optimal economic welfare for society.
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