ABSTRACT
The market structure of Perfect Competition is often considered a highly desirable one
particularly from the point of view of economic efficiency in a static, distributive sense.
This is in consonance with the view that trading in increasingly competitive markets is,
in theory, beneficial to economic welfare because of the greater efficiency in the use of
economic resources. While this may or may not hold true in reality, it is nevertheless of
importance to understand the intricacies and mechanics of this model which has received
so much attention.
