A Discussion on Perfect and Pure Competition of Market

Perfect Competition can be categorized as:

Large number of buyers and sellers:

A market runs on large number of buyers and sellers. Single firm is not able to affect the market supply or the market price. Similarly, there are large numbers of buyers also in market. Even the buyers can’t influence the price by changing their demand because each buyer and seller is like a drop in the ocean.

Homogeneous product:

Homogeneous product is known as the most important feature. According to it, product, which these large number of buyers buy from large number of sellers are identical or we can say perfect substitute. That means if one buyer increase the price, the buyer will buy it from other sellers as the products are identical e.g. rice.

Free entry and exit of firms:

We can take an example to clarify the term. An entrepreneur, who has enough capital and still can start the business and enter the industry and any one who is incurring loss can stop the production and exit the industry.

Firms are price takers:

If there are many buyers and sellers, nobody can influence the price or the supply in the industry. They are just like the drop in the ocean.

No cost of transportation:

In the perfect competition it is assumed that cost of transportation does not exist.

Now we should talk about perfect and pure competition. Perfect competition has all the features of pure competition and some more features. The first three features given under perfect competition constitutes pure competition whereas perfect competition has the features of pure competition and two more features they are perfect knowledge about the market and perfect mobility of inputs and output. Market of competition comes through profit maximization concept.

Property market also runs on the same concept of perfect and pure competition in the modern market. Now, market is not a place where we sell or buy a thing. Now, market is services also where third party takes an entry such as – finance market, property market etc.

Concept of Market Equilibrium Theory in Market Demand

Market equilibrium is able to show interaction between the demand and supply. “Equilibrium” is Latin word, which means equal balance. It means there is no tendency to move.

Equilibrium of demand and supply:

Take here interaction between demand and supply. Demand and supply are always depended on price for commodities. Equilibrium price is the match of price of quantity demand and quantity supply. Equilibrium quantity is buying and selling products on equilibrium price. Here is a diagram to represent market equilibrium:

Equilibrium of Demand and Supply

Equilibrium Price:

There is a graph to show equilibrium price of market. Here, supply is P2 S2. There is excess demand of S2 D2. Due to competition in buyers, the price increases and reaches OP.

Equilibrium Price

Market equilibrium:

If there are no changes in demand or supply then equilibrium will go on so long. At first, we should take the change in the demand curve and assume that the supply curve remains shame. For example – if the shift in demand curve is due to change in income.

Market Equilibrium (Shift in demand curve)

Let’s take a view of shift in the supply curve also and assume that the demand curve remains constant.

Market Equilibrium (Shift in supply curve)

At last, in the market equilibrium, everyone who wants to sell, finds a buyer and everyone who wants to buy, gets a seller. This happen when, the market reaches equilibrium when the buyer finds a willing seller and seller finds a willing buyer. This tendency of market to reach equilibrium is not just theoretical, but we can see things happening in our day to day life.

A Way of Growth in Property Business

I am not calming that in this recession there are no ways to growth. However, still there are many companies which have great plan to success in this recession. Real Estate sector is also very growing sector but in this recession it has affected.

I am going to share a real estate company of India which has great plan to success in this recession. The company has generated a revenue model which is for common people. According to the company by the revenue model even a common people can also earn by giving some extra time in property business.

According to the company,

Across India sales convert with the backup of our local presence either office either POW Only. Company giving you chance…Referral sales done by Adviser, which is not done always by Call Center, is always bigger in volume.

Also we are paying them & considering the referral sale as a Call Centre Sale. For Every Adviser Account there is a maximum limit fixed by Company as 1 Lakh in a week and 4 lakh in a month. It means “Low cost high Revenue Model”, to achieve faster break even.

I have already stated some model of the company in my previous posts. But here the company is going to introduce fully unique model – call center revenue model along with adviser model.

I am very amazed to hear that the company will give a person as 1 Lakh in a week and 4 lakh in a month. It is very high amount for a common people if he is interested in doing property business. However, the company introduces itself,

6 years old company, only ltd company into Real Estate brokerage 66 outlets 105 online portals, The one and only Company of India with Best Technology with Property Award winner of the Best Technology Company in Year 2009 by Real Estate Federate or India.

It shows the reliability of the company in real estate sector. But here is nothing which has been achieved earlier on the model which is currently, the company has introduced. The model is not only to attract a customer but also the company is trying to attract a common people also to participate in property business.

A Real Investment in Property Business

In India or across the world there are many concepts to earn money by investing in property business but a successful step has not been taken by anyone for common people. This is the age of global crisis where all industries are going down. Investments in all industries are down. In the mid of crisis people are looking for a successful business and concept to invest their resources and power.

Recently, our team analyzed a property business which was for common people. It was the concept of real investment in property business. It is not a new model but yes, the model has been launched with new theory. Already, Amway, world’s largest company, is running on the model which is known as binary system but the company has added some new concept in the binary system.

It is PropertySensex, India based real estates Company which announced that it offers an adviser model to earn money from real estates sector. It will be part time or full time work for any person.

To develop the model company has some new theories which are:

Property on Wheel (POW) with 0% brokerage

Adviser Model

According to the company these two models will be more effective than others real estate investments concept.

POW will work on 0% brokerage for only buyers across India. It will be a model of off-line advertisement also. Property on Wheel cab will run across India with GPS technologies. It will be advertised with company logo and phone number. To make the process easier company has offered single number for whole country.

POW offers only one logo across India to advertise property business. The company has offered commercial spaces for big companies also – TATA AIG Life Insurance, Max Life Insurance, Bharti AXA Life Insurance, Religare, Aviva, Subhiksha, Spencer Retail, Vishal Mega Mart, Bharti, Walmart etc. across India.

Company gives simple logic that when a cab run on road then surly, a buyer will call. When a buyer call to the company, the call will directly reach to the call center where call center agent look up nearest cab and will send that to the buyer as soon as possible.

It will be a reliable and faster service to deal a property. If a customer gets satisfaction by this service then he surly will recommend others also.

Adviser model is basic concept of the company. In the real estates sector it will be first retail chain. Future of the company will grow with the adviser model.

Adviser Model:

Adviser model will work on simply binary system like – Amway Company. An adviser has to send an SMS to the company if a buyer contact with him. He will be an authorized person of PropertySensex to recommend buyer. On each recommendation, if the deal gets success, he will get 20% commission by check in his bank account.

To be an adviser, a person can send an SMS to join. On each 1000 Adviser Company will offer a cab. Recently, company has targeted to achieve 9000 adviser across India.

Any person who is able to pay Rs 7720 will get software on his mobile for an adviser. This is the simple method to invest money and resources with the company.