188k views
2 votes
Explain the competitive nature of the market system

User Cutaraca
by
5.2k points

1 Answer

4 votes

A perfectly competitive market is characterized by many buyers and sellers, undifferentiated products, no transaction costs, no barriers to entry and exit, and perfect information about the price of a good. The total revenue for a firm in a perfectly competitive market is the product of price and quantity (TR = P * Q).

User Alessalessio
by
4.1k points