If in perfect competition, sellers and buyers are fully aware about the current market price of a product, then none of them sell or buy at a higher rate. As a result, the same price prevails in the market under perfect competition.

If under perfect competition, the buyers and sellers cannot influence the market price by increasing or decreasing their purchases or output, respectively, then the market price of products in perfect competition is determined by the industry.

If this implies that in perfect competition, the market price of products is determined by taking into account two market forces, namely market demand and market supply, then in the words of Marshall, “Both the elements of demand and supply are required for the determination of the price of a commodity.

If in the same manner as both the blades of scissors are required to cut a cloth, then market demand is defined as a sum of the quantity demanded by each individual organization in the industry.

If market supply refers to the sum of the quantity supplied by individual organizations in the industry, then in perfect competition, the price of a product is determined at a point at which the demand and supply curve pass across each other.

If this point is known as the equilibrium point as well as the price is known as equilibrium price, then in addition, at this point, the quantity demanded and supplied is called equilibrium capacity.

Demand refers to the quantity of a product that consumers are willing to purchase at a particular price and other factors tend to be constant.

If a consumer demands more quantity at lower price and less quantity at higher price, then the demand varies at different prices.

If supply refers to the quantity of a product that producers are willing to supply at a particular price, then the supply of a product increases at high price and decreases at low price.

A product platform can increase the speed of product development, reduce development costs, and contribute to increasing product variety, therefore a product platform plays the role of a lever to raise the competitive advantage.