Perfect Competition Market

Meaning :

Perfect Competition is a market where market offers an identical product and where entry and exit is easy and there is no barriers.

Characteristics of Perfect Competition Market :

1. In perfect Competition Market, there are multiple firms who offers identical products.

2. There are no barriers for entry and exit.

3. There is no control over the price as buyer and seller have complete knowledge about the products.

4. All products are homogeneous.

5. There is no need of advertisement of the products as consumers have all the knowledge about the products.

Example :

My mother is is a business women who runs a beauty parlor.
In that lane only there is two more beauty parlor, so consumer have choices to go any of the beauty parlor, as they have complete knowledge about the services and their prices.
Consumer can decide to avail the services of those parlor depending upon their price and which Services they like more.