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Answer to Question #28339 in Macroeconomics for prashant
Question #28339
what is competitive market?
Expert's answer
A competitive market is a market with a large number of buyers and sellers such than no single buyer or seller is able control the
price of goods and services.
The necessary conditions for competitive market to exist are: large number of buyer and sellers (so that nobody could influence the
price), firms are able to enter and exit the market easily, the market have
complete information and products are not differentiated.
price of goods and services.
The necessary conditions for competitive market to exist are: large number of buyer and sellers (so that nobody could influence the
price), firms are able to enter and exit the market easily, the market have
complete information and products are not differentiated.
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