course hero what is a competative market

What are the characteristics of a perfectly competitive market?

The characteristics of a perfectly competitive market include insignificant contributions from the producers, homogenous products, perfect information about products, no transaction costs, and no long-term economic profits. In practice, very few industries can be described as perfectly competitive, though agriculture comes close.

What is an example of a competitive market?

A great example of competitive market is farming. There are thousands of farmers and not one of them can influence the market or the price based on how much they grow. All the farmer can do is grow the crop and accept whatever the current price is for that product. They do not get to determine the price they want to sell the crop for.

Which characteristic creates the characteristic of rejectability in a competitive market?

You have the ability to reject the toy, and thus create the characteristic of rejectability in a competitive market. A competitive market occurs when there are numerous producers that compete with one another in hopes to provide the goods and services we as consumers want and need.

Who decides the price of goods in a competitive market?

One producer and one consumer can't decide the price of goods or decide the quantity that will be produced. A great example of competitive market is farming. There are thousands of farmers and not one of them can influence the market or the price based on how much they grow.

What is a competitive market?

A competitive market is one where there are numerous producers that compete with one another in hopes to provide goods and services we, as consumers, want and need. In other words, not one single producer can dictate the market. Also, like producers, not one consumer can dictate the market either.

What are the characteristics of a market?

1. Profit. If there is money to be earned, there is interest. When a firm has the opportunity to make a profit, this provides an incentive for them to go ahead and enter the market.

Can farmers influence the market?

There are thousands of farmers and not one of them can influence the market or the price based on how much they grow. All the farmer can do is grow the crop and accept whatever the current price is for that product. They do not get to determine the price they want to sell the crop for.