37582795
Description
Mind Map by Maribel Vivas, updated more than 1 year ago
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Created by Maribel Vivas
over 3 years ago
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competitive market
- in these marjets, the perfect competition
regime works.
- high number of buyers
- high number of vendors
- high number of buyers
- Each element of supply and demand
considered individually has no weight in the
market
- it is insignificant, the conditions of the fixed
market must be accepted
- it is insignificant, the conditions of the fixed
market must be accepted
- All the buyers as well as the sellers are
indifferent wiht respect to who buys or who
to sell, because the good is undifferentiated
- Perfect transparency in perfect competition and all buyers and all
bidders are fully aware of the conditions
- Free and perfect mobility of productivbe resources the company can
enter and leave the market with total fredom
- The competitive market is very useful to understand the fuctioning of companies and serves as a basis
for later understanding how it compares in other organizations
- optimum situation of the company
- somethig there are many companies that produce a
good and undifferentiated the power they have individually is null.
- They have to accept the conditions of the market, fixed and particular
- They have to accept the conditions of the market, fixed and particular
- Regardless of the amount of producto tht the company puts on
the market, the price at which they sell it is the one that is fixed
- The incomode of a company is the result of multiplying
the quantity of the product that it sells biy the price that
the market sets for the good
- Average income is the incomone per unut of the product
coincides wiht the price of the good
- MArginal revenue is the additional income that the
company obstains from the sale of each unit
- Therefore,each of the companis that serve a competitive
market coincides with the average and marginal income
- Therefore,each of the companis that serve a competitive
market coincides with the average and marginal income
- MArginal revenue is the additional income that the
company obstains from the sale of each unit
- somethig there are many companies that produce a
good and undifferentiated the power they have individually is null.
- Concepts
- competitive market: for a market to fuction under perfect competition if there is
a high number of sellers and the quantity of each one buys or sells is
insignificant with respect to the total that there is perfect transfer and that there
is perfect transfer and that there is free and perfect mobility of productive
resources
- Horizontal demand: for each company the power it has
individually is zero, with forces them to accept the conditions set
by the market, in particular the price
- Firm s supply fuction: a firm that operates in competitive market in the increasing regin
of its marginal cost fuction from the point of intersection from the average variable cost
fuction.
- competitive market: for a market to fuction under perfect competition if there is
a high number of sellers and the quantity of each one buys or sells is
insignificant with respect to the total that there is perfect transfer and that there
is perfect transfer and that there is free and perfect mobility of productive
resources
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