Miriamm

4.1. Perfect competition.
It is a theoretical model on the market price q is determined by the interaction of supply and demand.
Features:
1.Gran number of sellers and buyers and none of them can decisively influence either the price or quantity of goods and services.
Each producer wishes to influence the quantities q q will enable it to sell for profit. Sales prices must be higher than costs and will enter the market q other producers in search of benefits: they increase the production and supply and the supply curve will shift to the right.
2.The product is consistent. The products offered by companies should be exactly equal in a perfectly competitive market.
3.The market must be open and free. This means q for market access or egress of vended. And shopping. There are no obstacles.
4.The market must be transparent. Buyers and sellers should have pricing information for these vendors and buy q. They are willing to buy and sell. If this feature made any vendor sells the product at a higher price. In this market, the benefits tend to disappear and undertakings are able to reduce production costs.