Source: wikibot/perfect-competition
= Perfect competition
{wiki=Perfect_competition}
Perfect competition is a theoretical market structure characterized by a set of specific conditions that foster an idealized form of competition among firms. In a perfectly competitive market, the following key assumptions typically hold true: 1. **Many Buyers and Sellers**: There are a large number of buyers and sellers in the market, none of whom has significant market power to influence prices. Each firm is a price taker.