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The fact that trade does take place proves that a market exists. Obviously it's a different market, selling to larger establishments or even countries versus se
by yason 11y ago
The fact that trade does take place proves that a market exists. Obviously it's a different market, selling to larger establishments or even countries versus selling to small retailers. Similarly goods markets and prices are slightly different in big cities versus remote country villages. But a market is a market, and when a trade closes that's the market price. If the merchandise and the price paid for it didn't benefit both the company and the buyer, there would be no trade.
- marcoperaza 11y agoAny system with buyers and sellers is a "market", that's a meaningless standard. If all of the insurance companies in the US decided to merge and use their leverage to lower drug prices, it would be an illegal cartel. The resulting price would be the "market price" but not the price that would exist in a free market, which in most definitions includes prohibitions on such cartels. Governments can get away with it because they write the rules and there's no higher authority to stop them.