CHAPTER ONE

1.1       Introduction

It should be noted that this paper is a conscious attempt to uncover and make understandable the many ways in which the Sheikh Mahmud Gumi Market (Central Market) had encouraged, triggered or stimulated the development of the Kaduna metropolis. As such, in order to shade light towards such conscious effort, it is imperative for one to have a clearer and deeper understanding of what a market is and it is also important to understand what development actually is and what it means.

A market is a group of people who wish to exchange goods and services with each other. This group of people is made up of all those who wish to make and sell a particular good or service, and all those willing to buy it. Any market therefore is made up of producers and consumers. A market need not be in just one particular place. For the economist, anyone who wishes to buy or sell a good of service, wherever they are in the world, is part of market. Markets can be spread over a small area or a very large area. If an economist talks of a perfect market, then is one where no one producer or consumer alone can influence the price charged for goods and services. On the other hand, an imperfect market is one where perhaps a powerful producer or powerful consumer can affect the price charged for goods and services to their own advantage.1

1.                     D. motion Moynihan and Brian Tetley, Economics A complete course, Third edition, oxford: (Oxford university press, 2000) P.16-17

By looking at market structures we can analyze how much competition there is among firms making a particular product in an industry, and try to judge whether there is enough competition to ensure that consumers are not over charged for the product and that they get what they want with the best possible use being made of resources.

Perfect competition suggests that the perfect use of resources is being made by firms in markets where they face many competing firms. The firms providing the best quality goods and services at the lowest price will be the most successful.

Competition among firm encourage them to make a good use of scarce resources, because in order to make profits these firms must produce products that give the best value for money for consumers. The greatest competition between firms in a market is found in a situation of perfect competition.

A perfect competitive market is characterized by the followings:

Homogenous Product: All firms produce the same product.

Price takers: There are a very large number of buyers and sellers of the product, none of whom can buy or sell enough to be able to influence the price of the product as such; they are known as price takers.

1. 1. This material content is developed to serve as a GUIDE for students to conduct academic research work
2. 2. As a source for additional understanding of the subject.
3. 3. As a source for ideas for your own research work (if properly referenced).
4. 4. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)
5. 5. Direct citing (if referenced properly)
Thank you so much for your respect to the authors copyright.