Criteria used to judge how successfully a market meets the needs of consumers and producers:
* A successful market delivers the lowest possible prices to consumers while still enabling producers to make a profit. * A lower price allows consumers to increase their consumption of goods and services and therefore satisfy more wants. * A successful market is more likely to be achieved if resources are efficiently due to competition.
* A market should provide consumers with a wide choice of products and also a range of sellers. (more likely in a market with a large number of firms) * Customers can choose from a variety of products at a range of prices and satisfy more wants. * If a customer does not like the product of a particular firm, they can turn to alternative firms.
Quality: * The market should provide quality products for consumers. * Competition forces producer to provide quality goods and services to keep their customers. * Poor quality products means tee firm runs ricks of losing market share. A high level quality will be partly achieved through the use of improved technology.
* How well the market uses resources in production. * Efficiency is important because given that resources are scarce, they need to be used in the best possible way, to maximise…