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.
