<P> Within competitive markets, markets are often defined by their sub-sectors, such as the "short - term" or "long - term" market, the "seasonal" or "summer" market, or the "broad" or "remainder" market . For example, in otherwise competitive market economies, where a large majority of the commercial exchanges are competitively determined by long term contracts and therefore long term market clearing prices, a "remainder market" is one where prices are determined by the small part of the market that deals with the availability of whatever is not cleared via long term transactions . For example, in the sugar industry, about 94% to 95% of the market clearing price is determined by long term supply and purchase contracts . The balance of the market, and world sugar prices, are determined by the ad hoc demand for the 5% to 6% that is not sold via long - term contracts; prices in the "remainder market" fluctuate more widely and are determined by short term supply and demand conditions; quoted prices can be significantly higher or lower than the long - term market clearing price . Similarly, in the US real estate housing market, appraisal prices can be determined by both short term or long term characteristics depending on short - term supply and demand factors; this can result in large price variations for a property at one location . </P> <P> A practice is anti-competitive if it is deemed to unfairly distort free and effective competition in the marketplace . Examples include cartelization (collusion among companies producing the same product or services to fix the price of goods or services intended to mutual higher profit), predatory, and abuse . </P>

What does it mean to be competitive in business