Markets and Monopolies

1) Whenever people who are willing to sell a commodity contact people willing to buy it, a market for that commodity is created. 2) Buyers and sellers meet in person, or they may communicate by letter, by phone or through their agents. 3) In a perfect market, communications are easy, buyers and sellers are numerous and competition is completely free. 4) In a perfect market there can be only one price for a given commodity: the lowest price which sellers will accept and the highest which consumers will pay. 5) There are, however, no really perfect markets, and each commodity market is subject to special conditions. 6) Competition influences the prices prevailing in the market. 7) Prices inevitably fluctuate, and such fluctuations are also affected by current supply and demand.