Perfectly competitive market
A market which converges all of below assumptions is called perfectly competitive market:
''Assumption 1. All the firms in the industry sell an identical or homogeneouse product.
Assumption 2. Buyers of the product are well informed about the characteristics of the product being sold and the prices charged by each firm.
Assumption 3. The output of each firm, when it is producing at its minimum long-run average total cost, is a small fraction of the industry's total output.
Assumption 4. Each firm is a price-taker. This means that each firm can alter its output without significantly affecting the market price of its product. Each firm must passively accept the existing market price, but it can sell as much as it wants at that price.
Assumption 5. There is freedom of entry and exit, which means that any new firm is free to enter the industry and start producing if it so wishes, and any existing firm is free to cease production and leave......

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Title: Perfectly Competitive Market
Approximate Word Count: 754
Approximate Pages: 4 (250 words per double-spaced page)

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