An open market where goods are freely and voluntarily offered for sale by any number of willing sellers to any number of willing buyers at prices agreed by both parties. In the ideal competitive market the price of any article ill be fractionally above the cost of producg it by the most efficient producer. The latter will be able to sell thc goods at a price with which no other producer can compete still remain in business. In practice. partly due to thc limits set by both the saleable output of any one producer and distribution problems concerned with moving goods from supplier to buyer, the actual price will tend to average above the minimum as thc output of the marginally less efficient is brought in to fill total demand.
|Reference: The Penguin Business Dictionary, 3rd edt.|