Perfect Competition In Companies

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Perfect competition in companies

Introduction

The traditional definition of market is from the site where people come together in order to sell and buy some good. Within the economy it is defined as the group of potential vendors and buyers that meet to market a certain product. Vigaray, defines them as the set of buyers and vendors that negotiate with a specific product or a class of products. That is, the market is nothing more than a dialogue between a seller and a buyer of a certain product.

Companies manufacture certain products or provide some service to offer it to the strategic suppliers that correspond to them, within the markets we can distinguish real buyers, these are those that acquire a certain article, for example;People who have computers. On the other hand, we have the buyers powers, these are those that at this time do not have a product, but they could do it.

Developing

Among the types of buyer we can distinguish individuals or consumption, these have a link with the purely personal provider and public bodies, they acquire goods from other companies in order to sell them. In these we can distinguish the type of company that provides the product, such as the sale of raw materials, industrial products, service and computer products.

Number of competitors

Here we distinguish the number of people who acquire the different goods or use the services provided by a certain company. The amount of supply and demand of the product will determine whether the form of trade will be in domain of the people who sell or those who buy the product. It is based on the way buyers request a product or service of a company.

The competition

The competition is when a group of companies are in the same market to give their production to a certain group of people, we can also define competitiveness as the rivalry between different societies. We can define competition as the different companies that provide the same product or service. To succeed in a company it is necessary to know the companies that sell a good or provide a similar service to improve and highlight in the market.

Perfect competition

Giron, defines it as that in which sellers and buyers do not influence prices, have knowledge of the market, the good is homogeneous, there are no barriers to entry to this market. The perfect rivalry is an idealized and abstract link of the markets in which the interaction of the reception and the concurrence determines the amount, allowing the superior effectiveness in the assignment of media. Therefore, we can specify this type of competitiveness as a trade in which there are many buyers and vendors, so that none of the persons interested in acquiring the article or private merchants exercises the cost of the cost of the cost.

These authors refer to the fact that in this type of competences there are a large number of vendors offering the same merchandise and the price arises from the law of supply and demand, for this reason the seller cannot modify the value that will be given toA good to sell it. Within the perfect competition, no company is superior to another, they all work under equal conditions, neither do sellers carry out a marketing strategy, this is because this type of competence is based on homogeneity and doing one of the things mentioned aboveI would breach this requirement.

Imperfect competitiveness has a series of forms of commerce. This market form is characterized by the existence of a single merchant selling a product with great demand, that is, it is part of a legal privilege, because no other company is with the same customers. Calderón, the oligopoly in which there are several large producers with the ability to influence prices and monopolic competition. The author comments that this type of trade is about many vendors with great capabilities to influence the public sales value of an item. 

conclusion

All companies in an imperfectly competitive market have a common feature: they have market power, this author refers to the fact that, in the disagreement of a perfect capacity, here, the seller does have the capacity to establish a price to the product. One of the main characteristics that imperfect competitiveness has is the ability of companies and their influence influence, a decrease in the value of a good could mean an increase in productive capacities. In an imperfect economic way, the demand curve is perfectly elastic, this means that companies can influence the sale value to the public that has a certain good or service.

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