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Market: A location where buyers and sellers can come together in order to trade goods and services, often through the use of money.
Assumptions we make For Competitive Markets
Firms may compete with each other over who will sell the most output,
Consumers may compete over who will buy a scarce product,
Workers compete over who will get the best jobs with the highest salaries,
Countries compete over which will capture the biggest export markets, and so on. Beyond this everyday sense,
The greater the degree of competition between sellers, the smaller their market power, and the weaker is their control over the price.
Buyers Determine Demand 2. Sellers Determine Supply
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