Perfect competition

A market is said to be one with perfect competition if:

1. There is a large number of small producers and consumers on a given market
2. None of the parties can influence the price on his own
3. The price is given
4. Goods and services are [perfect substitutes]? - they are homogeneous
5. All resources (including information) are perfectly mobile
6. Transaction costs are naught.

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Other market forms