Perfect Competition: It is a market situation in which there are a large number of buyers and sellers, firms sell a homogeneous product and there is free entry and exit.
Features of Perfect Competition:
- Very large number of buyers and sellers.
- Homogeneous Product.
- Free entry and exit of firms.
- Perfect Knowledge.
- Perfect mobility.
- Absence of transport cost.
- Demand curve is elastic and parallel to x-axis.
- Firm is the price taker and industry is the price maker.
