Konkurentsiturg

Konkurentsiturg, often translated as competitive market, is an economic concept describing a market structure where numerous buyers and sellers interact, each with relatively small market share. In such a market, no single participant has the power to influence the market price. This price is determined by the forces of supply and demand. Key characteristics include a large number of participants, homogeneous products or services, easy entry and exit for firms, and perfect information available to all parties.

In a perfectly competitive market, firms are price takers, meaning they must accept the prevailing market price for their goods or services. If a firm tries to charge a higher price, consumers will simply buy from another seller. Conversely, if they charge a lower price, they would be losing potential revenue. This dynamic ensures that prices are driven down to the marginal cost of production in the long run.

While perfect competition is a theoretical ideal rarely found in its purest form, many real-world markets approximate this structure. Examples often cited include agricultural markets for commodities like wheat or corn, or stock exchanges where shares of widely held companies are traded. The concept of the konkurentsiturg is fundamental to understanding how markets allocate resources efficiently and how prices are formed in a free and open economic system. It serves as a benchmark against which other market structures, such as monopolies or oligopolies, are compared.