In a competitive market, products are typically sold at what price?

In a competitive market, products are sold at the market price, which is determined by the forces of supply and demand. This price reflects the equilibrium point where the quantity of goods supplied matches the quantity of goods demanded. In a perfectly competitive market, no single buyer or seller has the power to set prices; rather, they accept the prevailing market price that allows for the most efficient allocation of resources.

The market price is crucial because it facilitates transactions, allowing consumers to purchase goods at a price they're willing to pay while producers can sell their products at a level that covers their costs and allows for profit. It also serves as a signal to producers regarding how much of a product should be supplied.

When considering other pricing terms such as cost price, world price, and wholesale price, they do not accurately capture the dynamics of a competitive market. The cost price refers to the expenses incurred by producers in manufacturing a product, while wholesale price typically pertains to bulk selling between manufacturers and retailers, not the final price consumers pay. World price can refer to prices in the international marketplace, which may differ significantly from local market conditions.