Theoretically, perfect competition results in more products that are at better prices. Unfortunately, perfect competition cannot be fully implemented because we are not a pure capitalist society. There are restrictions on markets.
Perfect competition is a state where there are alternate buyers to replace any that choose not to buy from a seller and similarly alternate sellers who would replace any that refuse to sell.
Though perfect competition would benefit society in many ways, I wouldn't call it the perfect state. Some amount of imperfection I believe is essential for the growth of new businesses and economic development. Because perfect competition makes it impossible for a seller to make profits except those that are made due to the use of the most efficient operations.
I was not aware of this terminology, but as I understand the way it was explained, it seems that many countries are very far removed from perfect competition. In fact the business market seems designed, for the most part, to achieve the opposite. Most cases the best deal is achieved by the people who have power and control over the business and the consumer is just a by-product.
The first post here is substantially correct. But let's look at this in more of layman's terms.
The closer we get to perfect competition in a market, the lower the price for the consumer. When there is perfect competition, each producer is forced to lower prices as far as possible. In such a case, the consumers would be getting the best possible price.
Perfect competition does not exist in any market, but the closer we get to it, the better for the consumer.
Perfect competition with reference to economics allows for the best allocation of resources to maximize efficiency. In perfect competition all the producers are price takers. No single producer can set prices; instead each of them has to accept the lowest prevailing market price and adjust their operations to reduce costs as much as possible to be able to make profits.
Even buyers in the case of perfect competition are price takers. No single buyer has any influence on the price at which a product can be bought. This makes it essential for them also to utilize the product bought in the most efficient manner.
Perfect competition eliminates shortage and over-supply created by anyone to made undue profits. The only advantage that anyone has is in terms of increased efficiency.
Perfect competition though is something that is not practically possible. There is always an element of imperfect competition present in any market.