What is a Comparative Market?
- A comparative market is a market with many buyers and sellers trading a homogenous good or service in which each buyer and seller is a price taker.
How Do I Remember It?
- Think of a competitive market as a “level playing field” where no single buyer or seller can dictate prices. It’s like a marketplace where everyone has an equal opportunity to buy or sell goods at prevailing market prices.
Real World Example
- The agricultural market for wheat is often considered a competitive market. There are many farmers who produce wheat, and many buyers who purchase it for consumption or further processing. Since wheat is a standardized commodity, no single farmer or buyer can significantly influence the market price.
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By: Ryan Aquino
