Gary Taylor Investments: A Perfectly Competitive Market

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In order to understand if the market Gary Taylor investments operates in is a perfectly competitive market we must first define what that means and identify the characteristics a perfectly competitive market consists of. According to the text, a perfectly competitive market consists of a market that occurs when firms are price takers, all firms within the market produce a homogeneous product, and entry and exit of the market is unrestricted (Thomas & Maurice, 2010). A price taker is a perfectly competitive firm that is small relative to the market, thus resulting in the firm’s changes having little impact on the market, which in turn makes the firm accept dominate price in the market due to their lack of a market share (Hill & Myatt, 2007). The second characteristic of a perfectly competitive market is that each firm within a market produces a homogeneous product or one that is identical to the product that every other firm offers to ensure the buyer is indifferent about …show more content…
The market that Gary Taylor Investments exists in demonstrates some of the characteristics of a perfectly competitive market. In the whole scheme of things it is a relatively small company which is somewhat impacted by the overall dominate price. The real estate within the market is similar with the exception of location. Also the ability for a firm to enter or leave the market is fairly unrestricted. Overall these traits of the market that Gary Taylor competes in is similar to perfectly competitive market but not exactly which makes the answer not for this question. The main reasons for that is that the products are similar but not identical due to the location and demand for certain commercial real estate. Also, Gary Taylor due to the demand for his prime real estate can somewhat determine the price and makes changes to it within the market for
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