Chapter 7 is all aboutCompetitive Markets and Competitive Firms.For your discussion forum post this week I would like you to describe a product or service that fits within this market structure.

We don't really find many markets that are "perfectly" competitive but stay as close as you can to the key defining characteristics of the market structure:

1. Large number of buyers and sellers.
2. Homogeneous (or very similar) product.
3. Highly competitive so no real power over price, must go with market price.
4. Easy entry and exit into the market.

Note that in a highly competitive market you sometimes have to get in and make money quickly then innovate and move on to a slightly different product. OR you have to treat your customers very well so they keep coming back to you even if they can get the same product somewhere else.

For several years I went to the Video Rental place up behind Tessoro on Ohukai. They had the same movies as Hollywood or Foodland but I knew the people that ran it and I could call from my car on the way home from work and they would hold a movie for me.It was also the most convenient location for me to run in and out of.

Key this week is that you must find a product or service that is veryhomogeneous.If it is a differentiated product then it won't work because that is a different market structure called Monopolistic Competition.