A competitive market is a market where the price and quantity of the products are not controlled by one producer or seller. The market of basic necessities like wheat is an example of a competitive market. When we go out to purchase an item the price of this won’t matter to us because the price is almost the same.
The wheat production is related to the supply of wheat in the market is another important aspect of a competitive wheat market. However, one single farmer cannot affect the price of the wheat by deciding how much he has to grow. In a competitive market, the supply of wheat cannot be affected by the decision of one farmer.
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