<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> In economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition . In theoretical models where conditions of perfect competition hold, it has been theoretically demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price . This equilibrium will be a Pareto optimum, meaning that nobody can be made better off by exchange without making someone else worse off . </P> <P> Perfect competition provides both allocative efficiency and productive efficiency: </P>

Where does price come from in perfectly competitive markets
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