What are the condition for a perfectly competivie market? Name 3 products or services that may be found in a perfectly competitive market?
I know that the market has four market characteristics, or am i not on the right track. I read a little and I still not understanding it
Check this site.
http://www.answers.com/topic/perfect-competition
I am to Name 3 products or services that may be found in a perfectly competitive market? Do you have any suggestions?
Think of fresh produce at your grocery store.
I found this sentence from Investopedia at the above site.
"The industry that best reflects perfect competition in real life is the agricultural industry."
which of the following skills is necessary for a market researcher?
science skills
sales ability
math skills
creativity
You're on the right track! A perfectly competitive market is characterized by the following conditions:
1. Many buyers and sellers: In a perfectly competitive market, there are numerous buyers and sellers, none of whom have a significant market share. No single buyer or seller can influence the market price.
2. Homogeneous products: All products or services in a perfectly competitive market are identical or very similar in nature. There is no differentiation based on brand, quality, or any other attribute. This means that buyers perceive no difference between the products offered by different sellers.
3. Perfect information: All participants in a perfectly competitive market have access to complete information about prices, quality, availability, and other relevant factors. Buyers and sellers have perfect knowledge of market conditions and can make informed decisions.
4. Ease of entry and exit: It is easy for new firms to enter the market and existing firms to exit without any significant barriers or costs. This ensures that there are no restrictions on new competitors entering the market and prevents any individual firm from having long-term control over the market.
Now, to answer your second question, here are three examples of products or services that can be found in a perfectly competitive market:
1. Agricultural products: Commodities like wheat, corn, or soybeans, which are produced and sold in large quantities by numerous farmers and bought by various purchasers, can be found in a perfectly competitive market.
2. Stock trading: In a stock exchange, buyers and sellers interact to trade shares of publicly-traded companies. Given the large number of market participants, the availability of perfect information, and ease of entry, the stock market can exhibit characteristics of a perfectly competitive market.
3. Airline industry (to an extent): While some aspects of the airline industry, such as airline routes and airport access, may have limited competition due to regulatory constraints, certain elements like ticket pricing, where several airlines compete, can resemble a perfectly competitive market.
Remember, it is rare to find a market that perfectly meets all the conditions of perfect competition. The examples above may have some characteristics of a perfectly competitive market, but they may not satisfy all the conditions completely.