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social science subjects > business and management > business ethics > finance ethics > perfect markets and market imperfections

Preferred term

perfect markets and market imperfections  

Definition

  • The perfect market entails a structure of production and exchange in which optimal outcomes, both private and social, are attained efficiently and simultaneously without the need for intervention by nonmarket actors. In other words, the price and profit signals in the market lead automatically to production efficiency at minimum unit cost and to allocative efficiency at the most desired mix of output. [Source: Encyclopedia of Business Ethics and Society; Perfect Markets and Market Imperfections]

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https://concepts.sagepub.com/social-science/concept/perfect_markets_and_market_imperfections

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