2.1 Introduction to Competitive Markets Flashcards
1
Q
Definition of a “Market”?
A
A place (physical or virtual) where buyers and sellers of goods and services meet.
2
Q
Definition of “Competitive Markets”?
A
Where large number of buyers and sellers act independently, so that no individual seller has any control over the price of the product sold.
3
Q
What is the opposite of ‘market power’ or ‘monopoly power’?
A
Competitive markets as no one firm has full control over the price
