Discover why economic profits are theoretically impossible in a perfectly competitive market and why some economists use perfect competition models.

The Bottom Line Monopolies contribute to market failure because they limit efficiency, innovation, and healthy competition.

The Comparative Advantage Theory of Competition (CATC) is proposed by Hunt and Morgan (1995) to replace the Neoclassical Theory of Perfect Competition (NTPC). The new theory claims to offer a better ...

New competition policy seeks to promote competition and increase market efficiency. In fact, degree of price transmission between farmers and final consumers depends on degree of competition in ...