Purely competitive market is a type of market that we have today. It implies a large number of both sellers and buyers. So on the one side are we - buyers. We want to buy a certain product and in most cases we choose the most affordable brand of that product. On the other side there are sellers or producers. They determine the price of their product based on a lot of factors, but the factor that is relevant for this topic is competition. They must have in mind that on the market there are a lot of products that have the same use as theirs. So, if they want to beat the competition, they will put a lower price, the competitors will answer to that with maybe even lower price and so on. In that way, they will try to attract more people to their product. So we buyers are in a position to influence the market by choosing a certain brand.
