competition market - created from Mind Map

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Market competition occurs when in a market there is more than one company that compete for customers' preference for their products and services.

Prices are determined only by forces:

There are two types of competitive market

Importance of market competition

Supply and demand.

Try to maximize your benefit or satisfaction.

Thanks to this the ceiling of the price of that product will be reduced.

thus finding a balance between supply and demand.

There is an indefinite number of buyers and sellers.

Perfect competition

imperfect competition

Competitors in the market offering their products.

No company has the power to manipulate or set the prices of goods and services.

It is presented in a practical way in the market.

the agents that compete in the market.

Supply or demand.

They can manipulate the supply of the products and the establishment of prices.

the competition is completely necessary to regulate the market.

Consumers, we don't have to pay a price excessive for certain products.