Freedom of entry and exist in the market iii Lack of information asymmetry iv

Freedom of entry and exist in the market iii lack of

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Freedom of entry and exist in the market iii. Lack of information asymmetry iv. Homogenous products v. No transportation costs vi. No government interference vii. All buyers and sellers are motivated to maximize their utilities. The model is ideal and rarely exists in the world although some market places exhibit most of the features of free competitive markets. An example is street food vender along a busy street selling tacos which are topped with ground meat, fresh tomatoes, fried onions, cheese and
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FREE MARKET AND COMPETITION 3 spice sauce. There are many venders in the opposite street selling exactly the same product. None of the venders have the ability to change the price of the product in the market since every consumer knows the market price of the product and cannot pay more than the market price. Anyone else who would wish to supply the same product is free to join the market as well as anyone who wishes to quit and sell another product is free to do so. In summary, it is worth noting that no market can strictly adhere to the principles of free market and competition as it is only an ideal market structure.
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FREE MARKET AND COMPETITION 4 Machovec, F. J. (2014). Perfect Competition and the Transformation of Economics . Place of Publication Not identified: Rutledge.
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