MARKET FORCES

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Word Count: 1982 words

How Does the Market Works?

Market Forces

Introduction

In the economy, both nationally and worldwide, in virtually all sectors, we have many firms operating in the industrial and many consumers acting with indirect effects compared to each other. It is in this context that is considered the existence of the phenomenon "perfect competition", where we find an extreme situation where no company or any consumer have power enough to influence the market price. Firms producing, along with individuals consumers are responsible for determining the environment of the market price and the quantity to be followed by all firms in the economic sector, in a natural flow of supply and demand through the relationship between the participants.

environment where many companies produce exactly the same product or service, employing means of production costs.

existence of a large number of users, all having the same information about conditions, rates and offers available in the market.

occurrence of similarity between the products offered in the market.

absence of barriers to entry or exit of firms in the relevant market.

Established the conditions mentioned above, each company will market its graphics and projections on a demand curve horizontal situation indicator of a perfectly elastic. In such a situation, there is no incentive to practice a price different from that which appears on the market at that particular time.

This paper discusses the statement of Herberger in the interview to Commanding Heights. There are three parts of the statement. The first one relates to the forces of the markets, the risks that the market face when the factors are ignored and the ways that could lead to the positive impact of these forces on the society. It analyzes the impact of market forces on the society considering the effect of the market forces on the businesses and organizations. It discusses the market economics, the challenges and factors in the market economics along with the political forces that shape up the political economy of the business environment.

Forces of the Market

The most essential forces that have shaped up the structure and functioning of the market are the prevalence and flow of information that affects the markets. The marketplace has seen a shift in the functioning and operations of the economical stance of the market that is brought about by the information and knowledge management. Before the introduction of the information technology and the new drivers of they market that have lead to increased competition in the market, there was a presence of the competition in the market that was brought about by different factors and forces. The competitive model was driven by the structure of the competitive model of the market and the internal logic in the market that have lead to the competition in the market. The competitive model did not last for longer as it shifted economics to the field of engineering. The participants of the economy and competitive model were considered to be worse or better engineers of the ...