Transportation for goods is affordable and efficient.All firms in the market are price takers, meaning they do not have the power to affect the price of the goods they sell. Both producers and consumers have perfect knowledge (for the present, as well as the past and future) regarding the nature and price of the product for sale from each firm.There are no barriers to entering or exiting the market.All of these firms sell the same homogeneous product, often classified as a commodity.As an economic theory, then, it does not seek to literally describe reality but to stand as an “ideal type” against which markets in the real world can be compared and contrasted. It is important to note that this form of market structure does not actually exist in the real world and is thus considered to be theoretical. Perfect competition or pure competition (sometimes abbreviated to PC) is a type of market structure.
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