A competitive market (market) is one in which there is a finite number of sellers and buyers, each of whom seeks to maximize its profits, while maintaining its competitive position.
These two conditions are what make for a competitive market market, and they are the two things that prevent any market from becoming efficient.
They are that one of the sellers/buyers must produce a price that is lower than the demand for it, and the other seller/buyer must have a price that is higher than the demand for it.
market market doesn’t operate in that way, because demand changes when new products come on the scene. As a result, the only reason the market is efficient is that the only two sellers are the only two buyers. But since the demand is changing, the only way for the market to realize its efficiency is by producing a price that is lower than the demand.
There are two conditions that may have to hold for a market to produce efficient outcomes: price and demand. But these two are not necessarily in conflict. There’s a reason why Walmart sells stuff cheap. It’s because people are buying it to make a profit. But there is also a reason why Amazon sells stuff cheap. It’s because people are buying it to make a profit. But there is also another reason why Walmart sells stuff cheap.
What the hell is going on in Walmart that makes them sell stuff cheap? Walmart is a highly competitive marketplace. Every company in the world is trying to outdo each other in the quality and price of their products. It works because the more competitive a market is, the more it can produce efficient outcomes price and demand. The more efficient outcomes price and demand, the less the cost to produce them. And the less efficient the price and demand, the more the cost to produce them.
Walmart is a very competitive market. It produces efficiencies in the cost to produce many things and therefore the price of many things. The more efficient the cost to produce a particular thing, the less the cost to produce the thing. And thus if one company can produce a higher cost to produce one thing, it will sell more of the thing. And lower cost to produce the other thing, they will sell less of the other thing.
The question of what makes a competitive market efficient is a common one for economists. If the cost to produce a particular product is more efficient than a competitor’s, then the cost to produce the competitor’s product will be lower than the cost to produce the product of the competitor. In short, price competition results in a cheaper price to produce the product, and that in turn will result in a lower cost to produce the competitor’s product.
The same principle applies to the market for information. A market in which more than one person is interested in the same information is said to be a competitive market, and it is said to be efficient if the market can produce (among other things) the information in a way that is profitable to all people interested in the information and at a fair price.
I suspect the first two conditions are related. I think our society is probably more competitive in the area of ideas than in the area of products, but also in that there are a lot more people interested in the same things, and I think the last two conditions are related, but I don’t really know.
