So no individual can control the price.
Many buyers and sellers, free market entry and exit.
A perfectly competitive market: 1) many buyers and sellers 2) no individual has influence over the market: buyers and sellers are price takers. 3) no barriers to entry 4) goods are perfect substitutes (no differentiation between products)
*** Market condition wherein no buyer or seller has the power to alter the market price of a good or service. Characteristics of a perfectly competitive market are a large number of buyers and sellers, a homogeneous (similar) good or service, an equal awareness of prices and volume, an absence of discrimination in buying and selling, total mobility of productive resources, and complete freedom of entry. Perfect competition exists only as a theoretical ideal.
A competitive market is one that has multiple buyers and sellers. This means there is no single vendor or consumer who has absolute control over the price in the market. In such a market, businesses openly compete for market share.
the industry's demand curve is perfectly elastic
So no individual can control the price.
You need these people in order to sell products. Money needs to exchange hands in order to be competitive.
Many buyers and sellers, free market entry and exit.
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.
Buyers and sellers
A perfectly competitive market: 1) many buyers and sellers 2) no individual has influence over the market: buyers and sellers are price takers. 3) no barriers to entry 4) goods are perfect substitutes (no differentiation between products)
*** Market condition wherein no buyer or seller has the power to alter the market price of a good or service. Characteristics of a perfectly competitive market are a large number of buyers and sellers, a homogeneous (similar) good or service, an equal awareness of prices and volume, an absence of discrimination in buying and selling, total mobility of productive resources, and complete freedom of entry. Perfect competition exists only as a theoretical ideal.
competitive sellers, cost of promotions and most of all the price of product
Amazon has a wide selection of sellers that sell iPod accessories. Because of the many sellers competing for sales, you might be able to find competitive pricing for iPod speakers at Amazon.
sellers provide full and accurate information about loan terms
A competitive market is one that has multiple buyers and sellers. This means there is no single vendor or consumer who has absolute control over the price in the market. In such a market, businesses openly compete for market share.
the industry's demand curve is perfectly elastic