2/28/2007

Perfectly competitive markets

I'm taking a basic Economics course as part of Humanities credits this semester. We were discussing monopoly and perfectly competitive markets. The prof was writing down the conditions when we classify a market as perfectly competitive, when it struck me that prostitution is a nearly perfect example of a perfectly competitive market. I told this to Spanky too, who was sitting beside me. There is free entry for everyone to enter the market, there are infinite buyers and sellers, each seller might have a unique selling point, and one buyer or seller cannot influence the price.

8 comments:

Anonymous said...

Actually, no. There is a high barrier to entry (presence of several cartels and local monopolies... it's a rough world), and the number of sellers is not as high as you might think. (High-risk job, very few people want to take it.)

CB said...

Whatever ;-)

dushy said...

One buyer may not,
But One seller can influence the price!
What say?

Ankita DJ said...

N-a-h-a-ice!

Mohan K.V said...

I agree with anon, in fact, there is no question of free entry with an entire hierarchy of pimps and mistresses..

Ducky said...

I agree with Anon and Dushy. There are less sellers, and assume one Seller is Giselle Bundchen, ASSUME (:P). Slingh over no?

abhishek gaurav said...

if that was it..we wouldnt have been "virgins" till now !!!!!!

abhishek gaurav said...

if that was it..we wouldnt have been "virgins" till now !!!!!!