Free competition is called perfect or pure, because not subject to influence and pressure from the state or individual large market operators. It is in such conditions that the optimal cost of goods or services is formed, when the buyer must pay a real, and not an inflated price. The influence of the state can be minimized and reduced to controlling the actions of monopolies, which will also contribute to the normal development of free markets. Free competition is the optimal model for small companies and entrepreneurs starting a business. Large firms can offer a product at a lower price, but small firms win their consumers with an individual approach, various "chips" that a large company cannot do.
Features of the pure competition market:
In each large segment there are many small firms whose activities are independent of each other.
The share of market players is so insignificant that any change in the cost of goods, services or the volume of production of one company will not affect the market price in any way. In such conditions, all market players themselves monitor the average market price and try to adhere to it.
All companies release a product with similar characteristics, so the buyer decides for himself which product or service to buy.
There are no barriers to entry into the market. A startup does not require large investments, obtaining special permits from government agencies and other things.
Information about the market is available to everyone.
More here - https://en.wikipedia.org/wiki/Free_market
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