learning perfect competition fist also enables students to see the power of the market system. it is impossible for student to discuss the efficiency of markets as the problems that arise from markets until they have seen how a simple perfectly competitive market system produces and distributes goods and services. this is our purpose in chapter 6 through 11. chapter 12 general equilibrium and the efficiency of perfect competition is a pivotal chapter that links simple perfectly competitive markets with a discussion of market imperfections and the role of government.