Traditional Culture Encyclopedia - Traditional festivals - Is the food market a fully competitive market
Is the food market a fully competitive market
Vegetable market is a completely free competition market, the practitioners are mostly single individuals. China's low degree of organization of farmers' production, farmers enter the market too many subjects (each farmer is a market subject), the vegetable market is basically a completely competitive market, farmers do not have pricing power.
Conditions for a fully competitive market
From the present point of view, farmers' markets and roadside stall markets are relatively more in line with the conditions for full competition.
According to the definition of a perfectly competitive market, there are numerous producers and consumers in the market, and no individual market behavior of any producer or consumer will cause changes in market sales volume or price.
The products in the market are so indistinguishable in terms of quality, performance, appearance, packaging, etc., that no single firm can create a monopoly by influencing prices through the distinctiveness of its products from those of others.
That is to say, entering or leaving the market is entirely at the discretion of the producers themselves, and is not subject to any social decree or other social force. Every buyer and seller knows the market price and trades according to this established market price, which also excludes the possibility of a market trading at different prices at the same time due to the lack of information.
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