Efficiency and Distribution in Perfect Competition Markets: An Analysis Based on the Marginal Productivity Theory

Sicong Pan (), Zihan Wang, Yunhan Wang, Qingyang Guan, Zhenyan Zhao and Fangyuan Zhao
Additional contact information
Sicong Pan: Harbin University of Commerce, Finance School
Zihan Wang: Harbin University of Commerce, School of Economics
Yunhan Wang: Harbin University of Commerce, School of Accounting
Qingyang Guan: Harbin University of Commerce, Management School
Zhenyan Zhao: Harbin University of Commerce, School of Economics
Fangyuan Zhao: Harbin University of Commerce, College of Public Finance and Administration

A chapter in Proceedings of the 2025 10th International Conference on Financial Innovation and Economic Development (ICFIED 2025), 2025, pp 462-473 from Springer

Abstract: Abstract This paper examines the efficiency and distribution in perfect competition markets through the lens of the Marginal Productivity Theory. It begins by outlining the theoretical framework of perfect competition and the foundational principles of the Marginal Productivity Theory. The study then highlighting the role of marginal productivity in determining factor rewards and overall market outcomes. The paper further applies the theory to derive key formulas and provides a detailed analysis of their implications. Empirical evidence and case studies are used to validate the theoretical findings. The paper also includes a comprehensive section on the visualization of market dynamics, presenting five key graphs that illustrate the core concepts discussed. Finally, the paper discusses the practical challenges to perfect competition and the implications of market failures on efficiency and distribution.

Keywords: Perfect Competition; Marginal Productivity; Economic Efficiency; Empirical Evidence (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-702-1_49

Ordering information: This item can be ordered from
http://www.springer.com/9789464637021

DOI: 10.2991/978-94-6463-702-1_49

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().