The Four Characteristics Of A Perfect Competitive Market: A Market Model

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A perfect competitive firm is defined as: “a market structure with many fully informed buyers and sellers of a standardized product and no obstacles to entry or exit of firms in the long run.” The four characteristics of a perfectly competitive firm include the following: it must consist of many buyers and sellers, firms sell a particular commodity, buyers and sellers are fully informed about the price and availability of all resources and products, and firms and resources are freely mobile. These four characteristics contribute to the reason why a perfectly competitive firm is unable to become a “price-maker” (perfectly competitive firms are unable to make up their own prices) and must be a “price-taker”. As a result of being a “price-taker”, …show more content…

Since the Rio Grande Valley is conveniently located just minutes away from Mexico, there is a great influx of undocumented immigrants traveling from across the border in an attempt to make the United States a new home. Because of the recent controversy surrounding undocumented immigrants “illegally” crossing the border, many are currently being held in Immigrant Detention Centers along with churches and other facilities in the Rio Grande Valley. Though it may seem like a simple feet to acquire a green card- a United States permanent resident card – it is actually quite difficult to do so and can usually take up to years and add up to thousands in costs. Due to all of these following reasons, the demand for green cards in the Rio Grande Valley is at an extreme high because of the benefits one acquires once they’ve obtained legal residency. A green card consolation service-that would be distributed by a private sector- would fit the characteristics of a perfectly competitive firm since many different producers/distributors could enter the market “freely” due to its high demand. The green card – the identical product sold amongst the firms- cannot be differentiated by its appearance, thus looking identical to others that are in the market. Along with that, the perfectly competitive market would set a “market price” for the good, so that no firm …show more content…

If more green cards could be easily accessible by immigrants, there would be less controversy and violence surrounding the process of illegal immigration and the extremities one must go through in an attempt to cross the border. Along with that, unemployment rates in the United States would decrease since more immigrants would be joining the labor force and would be willing to work for a lower compensation than usual. Furthermore, couples that immigrate from the border could reproduce and increase the number of children in the Rio Grande Valley- thus increasing the demand for more schools and services, which also directly increases the employment rate for teachers and custodial workers. Though there is much heated debate surrounding immigration reforms and side would be the best option, immigrants that are fleeing from their country and coming to America could greatly benefit from a perfectly competitive green card market in the Rio Grande

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