Perfect Competition Real Estates

To what extent do real state agencies in Brisbane equip the characteristics of a suddenly competitive industry? For real estate agencies to meet the criteria for a perfectly competitive industry at that place be three criteria that they have to meet; Many sellers with grimhearted firms Homogenous product Easy entry and exit into the particular industry A basic chart showing the distinct qualities of a perfectly competitive industry, one in which any bell in a higher place the current foodstuff price will not be filled, causing producers to become price takers, where they cannot de landmarkine the price, only the touchstone supplied. (A Layton, T Robertson, IB Tucker. 2005. Economics 2nd Edition Australia Nelson) MANY SELLERS, dispirited FIRMS There are many real estate firms that are currently in the foodstuff in Brisbane. Large firms such(prenominal) as Raine & Horne, Ray Green, L J Hooker down to the depressed, privately owned outlets. On the REIQ (Real estate institute of Queensland) website, (http://www.reiq.com.au) accessed April sixth 2007, a search for real estate agencies in Brisbane midland city alone returned 79 results. These real estate agencies do not have enough power to influence price in the industry individu wholey due to the large beat of competitors in the industry.

The vast amount of Real Estate firms nearly the Brisbane CBD, satisfy this theory for a perfectly competitive market in the real estate industry, by having many small firms with plentiful sellers, in which an individual firm cannot determine market price. HOMOGENUS PRODUCT To satisfy this second criteria, the product or services that are sold in an industry have to be identical. The term real estate means; Land, including all the natural resources and eternal buildings on it. (http://www.answers.com/topic/real-estate) Answers website Accessed April 6th 2007 Therefore, a real estate agency offers its service to sell or buy land, including all the natural resources and permanent buildings on it on... If you want to get a full essay, order it on our website: Ordercustompaper.com

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