ECON 102 Chapter 4: Economics 102 Chapter 4
Document Summary
Market - group of buyers and sellers of a particular good or service. Buyers as a group determine the demand for the product, and the sellers as a group determine the supply of the product. Competitive market - market in which there are so many buyer and so many sellers that each has a negligible impact on the market price. Each seller of ice cream has limited control over the price because other sellers are offering similar products. To each the perfectly competitive, market must have two characteristics: Goods offered for sale are all exactly the same. Buyers and seller are so numerous that no single buyer or seller has any influence over the market price. Price takers - buyers and sellers in perfectly competitive market must accept the price the market determines. Monopoly - some market have only one seller and this seller sets the price.
