[This is part of the series: The Complete Guide To Economics 101.]
What is a competitive market?
I have defined a market, in general.
More specifically, a market can be made up of many types of buyers and sellers.
A Competitive Market is market made up of both many buyers and many sellers.
This is where no single buyer, and no single seller, can influence prices in a significant way.
Other examples of market makeups include:
- Many buyers, and few sellers
- Many buyers, and one seller
- Few buyers, and many sellers
- One buyer, and many sellers
- And – One buyer, and one seller