Quantcast
Economics 101: Competitive Market | SterlingTerrell.net

Economics 101: Competitive Market


What is a competitive market?

A Competitive Market is a market with large number of both buyers and sellers.

Because of this large number of both buyers and sellers, no single buyer and seller is able to have a significant impact on setting prices.

Said different, in a competitive market, all participants are price-takers.

Good examples for this are the markets for many different commodities: oil, sugar, coffee, cocoa, etc.