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What is the difference between a competitive free market system and a self regulating free market?
Wiki User
∙ 12y ago
These are different ways of describing an economy. A self-regulating economy is one that is in effect with no government or outside regulation and interference. The mechanism by which an economy self regulates is via price. If the price in the market is too high to gain a sufficient demand, the price will be driven down in a "self-regulatory" manner until the price is at a point that allows the economy to be in a general state of equilibrium, which is the point where supply equals demand.
A competitive market is a vague definition of a market. Markets are generally classified by the type of competition present in the system. A perfectly competitive market is a market in which each supplier has an identical product and can not influence the price in the market, if they raise the price even a little bit, all of their sales would go to another firm in which the price is cheaper. There are monopolies (one firm) oligopolies ( a few firms) and other types of markets that are defined by competitiveness.
The major distinction here is that self-regulation happens over many markets and can not be compared to a certain type of market.
Wiki User
∙ 12y ago
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What is the difference between local market and national market explain with example?
what is the difference between local market and national market
What is the relationship between start up costs and a competitive market?
markets with high start-up costs are less likely to be perfectly competitive.
What is the regulating force in a free market?
competition.
Is cigarette market a perfectly competitive market?
There is no such thing as a perfectly competitive market. It is merely a economic model to compare other market structures to. Cigarette market is more likely a oligopoly.
Describe the role of prices in market economics define the equilibrium of a market descrobe the forces that move a market toward its equlibrium?
Generate a debate about competitive market? How in your opinion a Competitive market can be evolved?
what is the differences between Perfect Competition and Monopoly Market?
The difference between a monopoly market and a perfectly competitive market is that in a perfectly competitive market there are many sellers and buyers, the traded goods are homogeneous goods or the same goods and sellers are not free to set prices. whereas, a monopoly market is a market that has only one seller, so buyers have no other choice and sellers have a large influence on price changes.
What is the difference between local market and national market explain with example?
what is the difference between local market and national market
What is the difference between industry and market?
what is the differences between Industry and Market
What is the relationship between start up costs and a competitive market?
markets with high start-up costs are less likely to be perfectly competitive.
What is the difference between market and floating market?
a floating market floats but an market dont float
What is the difference between in the market and on the market?
In the market is where you do your buying and selling. On the market is where you put something that is for sale.
What is the regulating force in a free market?
competition.
What is the difference between dealer and stock markets?
differance between stock market and dealer market?
What is the difference between factor and product market?
The difference between a factor market and a product market is that a factor market is a market where productive resources are bought and sold, while a product market is a market where products offer goods and services for sale.I copied this out of my econ book =)
What is the relationship between startup cost and a competitive market?
Start up costs are much higher in a competitive market. If you have little orno competition, you can be successful with less ads, inventory, employees, ambience etc. Open on a low budget in less competitive market-- do your job so well--- grow grow grow. Become so good that you own your market. Then continue to learn and grow.
What is the relationship between start-up and a competitive market?
Start up costs are much higher in a competitive market. If you have little orno competition, you can be successful with less ads, inventory, employees, ambience etc. Open on a low budget in less competitive market-- do your job so well--- grow grow grow. Become so good that you own your market. Then continue to learn and grow.
Is cigarette market a perfectly competitive market?
There is no such thing as a perfectly competitive market. It is merely a economic model to compare other market structures to. Cigarette market is more likely a oligopoly.
