Atomistic Competition  

Definition of Atomistic Competition: a Market structure where firms are so numerous that the market represents perfect competition. In atomistic competition there will be the following features:

  1. Many small firms
  2. Absence of economies of scale
  3. Firms do not have the ability to set prices (they are price takers)
  4. Low Profits and low prices for consumers

Atomistic competition is quite rare in the real world.

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