Atomistic market
Encyclopedia
In an atomistic market, each seller's size is so small, relative to the market as a whole, that it has no appreciable effect on price. As a result, such sellers have no market power
. This structure is consistent with perfect competition
.
Market power
In economics, market power is the ability of a firm to alter the market price of a good or service. In perfectly competitive markets, market participants have no market power. A firm with market power can raise prices without losing its customers to competitors...
. This structure is consistent with perfect competition
Perfect competition
In economic theory, perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets...
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