Perfect Competition

Perfect Competition market structure in which the following five requirements are met: 1) All firms sell the same product; 2) All firms are price takers – they won’t control the market price of their merchandise; 3) All firms employ a relatively small marketplace share; 4) Buyers have complete info on the product offered and the rates charged by each and every firm; and 5) The is characterized by means of freedom of accessibility and exit. Perfect competition is sometimes termed as “pure competition”.