What is a perfect competitive market?

A perfect competitive market is another term for a competitive market where there are no barriers to enter a market, there are lots of buyers and sellers that are small and do not affect the prices in the market and the products must be homogeneous. What is a Competitive Market?

What is a competitive market?

Here is an introduction to the concept of a competitive market that outlines the economic features that competitive markets exhibit. Competitive markets, which are sometimes referred to as perfectly competitive markets or perfect competition, have three specific features.

What makes a competitive market a profitable market?

A competitive market must be profitable to entice sellers to enter. It must be diminishable, meaning supply can decrease and price can rise. It has to be rivalrous so there is incentive to make the products better. There must be the ability for sellers to exclude buyers and buyer to be able to reject a seller's product.