Explain the competitive nature of the market system

A perfectly competitive market is characterized by many buyers and sellers, undifferentiated products, no transaction costs, no barriers to entry and exit, and perfect information about the price of a good. The total revenue for a firm in a perfectly competitive market is the product of price and quantity (TR = P * Q).

in mcculloch v. maryland (1819) the supreme court ruled that congress had implied powers under the necessary and proper clause of article i, section 8 of the constitution to create the second bank of the united states and that the state of maryland lacked the power to tax the bank.

gibbons v. ogden, (1824), was a landmark decision in which the supreme court of the united states held that the power to regulate interstate commerce, granted to congress by the commerce clause of the united states constitution, encompassed the power to regulate navigation.