What Is a Market?
Market – Collection of buyers and sellers that, through their actual or potential interactions, determine the price of a product or set of products.
Industry – A collection of firms that sell the same or closely related products.
Market definition – Determination of the buyers, sellers, and range of products that should be included in a particular market.
Arbitrage – Practice of buying at a low price at one location and selling at a higher price in another.
Perfectly competitive market – Market with many buyers and sellers, so that no single buyer or seller has a significant impact on price.
Market price – Price prevailing in a competitive market.
Extent of a Market – Boundaries of a market, both geographical and in terms of range of products produced and sold within it.
