Perfect Competition
Perfect competition is a market structure with many small buyers and sellers, an identical, undifferentiated product, easy entry and exit for firms, and complete information for everyone involved; because no single buyer or seller is large enough to affect the market price, each firm in a perfectly competitive market is a "price taker," accepting the price the overall market sets rather than setting its own. Very few real-world markets meet every one of these conditions at once, so perfect competition mainly works as a useful theoretical benchmark for comparing how other, more realistic market structures actually behave.
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