Answer to Question #61024 in Microeconomics for jerrod
There are many sellers in the market.
Firms are price takers.
Goods offered for sale are largely the same.
Firms have difficulty entering the market
Within the perfect competition firms can easy enter or leave the market, there are no barriers for new sellers to operate. All numerous companies are price takers and offer identical products. Market demand and supply define an equilibrium quantity and a price of goods.
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