You need these people in order to sell products. Money needs to exchange hands in order to be competitive.
Buyers and sellers
eBay Motors offers a platform for vehicle buyers and sellers to buy and sell cars, trucks, motorcycles, and other vehicles. They provide tools for listing vehicles, conducting auctions, and facilitating transactions. Buyers can browse a wide selection of vehicles and sellers can reach a large audience of potential buyers.
An orderly market with sufficient liquidity where numerous buyers and sellers can agree on a fair price. You will notice the words "liquidity" and that the plural is used for buyers and sellers. There has to be money available to close a sale and some competition between buyers and sellers to make the transaction somewhat "fair".
the only difference between tax paid by buyers and tax paid by sellers is who sends the money to the government. Manga economics student
Sellers should pay closing costs in Michigan. However, this is not a law by any means. Sometimes the sellers will offer to pay half, or they may expect the buyers to do it.
So no individual can control the price.
So no individual can control the price.
Many buyers and sellers, free market entry and exit.
so no individual can control the price
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.
In a perfectly competitive market, there are many buyers and sellers, products are identical, and there is easy entry and exit. Prices are determined by supply and demand. In a non-perfectly competitive market, there may be barriers to entry, products are differentiated, and firms have some control over prices.
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)
In a perfectly competitive market in the long run, key characteristics include: many buyers and sellers, identical products, free entry and exit of firms, perfect information, and firms earning normal profits.
A perfectly competitive firm is considered a price taker because it has no control over the price of the goods or services it sells. In a perfectly competitive market, there are many buyers and sellers, and each firm's output is a small fraction of the total market supply, so individual firms must accept the market price set by supply and demand forces.
large numbers of buyers and sellers
the industry's demand curve is perfectly elastic
*** 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.