A Market in Which There Are Many Firms, Each of Which

A market in which there are many firms, each of which has an insubstantial share of the market; there is free entry into the market and no barriers exist to prevent entry; there is a homogeneous product and all firms in the industry produce exactly the same product; there is perfect factor mobility and the factors of production are free to move between industries; and there is perfect information in the sense that all participants in the market are fully informed about its price and about its profit opportunities is a perfectly competitive market.