What is a competitive market?

Economics Dec 17, 2020

Expert Solution

A competitive market is one in which there are many competitors selling or making a product and no particular seller or manufacturer has the power to control how the market performs and it is up to customers to decide which seller to buy from based on quality and price. When a market is not competitive, as occurs when one company sells or manufactures a product by operating a monopoly, they are able to charge higher prices and be less efficient as there are fewer incentives to do so.

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