Greetings again my dear friends, I hope you are all very well, sharing in family, and when talking about family we can quickly link with the topic that we will be addressing in this opportunity, that is, the market of perfect competition, and we will do this from a generalized view in order to provide some characteristics of this type of market, of which we have participated at some point in time.

In this world, where the economic aspect is becoming more and more important in our way of life, it is convenient that we know some aspects of the financial field at least in a general way, the idea is to identify ourselves a little more with the remarkable complexities of each market, where we usually have to participate to obtain some goods or services.

Each individual member of a society is subject to multiple conditions, and they try to harmonize the coexistence among all, in this way we can see each market subordinated to so many conditions, from a macroeconomic view, as established by a particular supplier to characterize the quality and price of their product, this to name some of the many complexities immersed in any market.

Perfect competition market

In relation to this type of perfect competition market, we can say that it is considered as that hypothetical economic space where the different sellers offer their products with identical characteristics, and furthermore, these companies that offer their products cannot influence the price of said product or service, and likewise occurs with the buyers, so that the natural interaction between supply and demand represents the greatest force in the conciliation of prices.

Therefore, in this type of market, the companies that participate take the price instead of placing it, due to the supply and demand forces mentioned above, another aspect to highlight is that the companies have no impediment to offer products or services or to stop doing so, since they do not have the possibility of influencing the prices, the companies run the risk of not generating profits through the sale of their products in the long term.

In this type of market, both buyers (consumers) and sellers know in detail about the quality, prices, quantity, and usefulness of the products being marketed, being one of the most criticized aspects the fact that it is related to the option of offering homogeneous products, leaving aside the innovative capacity of the suppliers.

Although it is possible to find this type of market in real life, however, it works at times or in some specific situations, due to the constant innovation of each one of the goods or services or the great influence of the monopolies present in the markets at any level.

Maybe some of us have been introduced to this type of market when we go to a sale of fresh fish on the pier itself, personally I have had this opportunity and there are many people who come to buy, the fish vary in size, but generally, are sold by kilograms or pounds, and because of the proximity of the sellers we all know the price both buyers and sellers.

In the same way, when we attend a market for the sale of rubles such as corn, rice, cassava, among others, with similar characteristics, where the price generally remains constant due to the homogeneity of the products offered and the aspects described above.

Conclusion

If there is a word well known by all of us is the market, and how not to be, if this space is represented by those places where converge both supply and demand for various goods or services that at a given time we need, and we can access them usually through an exchange of money.

Throughout our history we have analyzed the different variables that influence this important area of our lives, and this achieved through economic science, the remarkable structuring of the different types of markets are based on numerous studies with experiments with obvious scientific features, and the same known or disclosed both academically and to the general public.

It will always be important to be able to know any aspect related to our social welfare, where we find the economy and its profoundly scientific bases.

Until another opportunity my dear friends.

Sources of cover gif images

Source (1).
Source (2).

Note: The gif image was made using the PhotoScape application.

Bibliographic references consulted and recommended

[1] Principles of Economics in Context (Goodwin, et al.), 2nd Edition. PERFECTLY COMPETITIVE MARKETS. Link.

[2] PERFECT COMPETITION. Link.