A requirement of perfect competition is that i. many firms sell an identical product to many buyers.
Ii. there are no restrictions on entry into (or exit from)the market, and established firms have no advantage over new firms
Iii. sellers and buyers are well informed about prices.

Question

Quizplus · Accepted Answer

All three conditions are necessary for a market to be considered perfectly competitive: many firms selling identical products, no barriers to entry or exit, and well-informed buyers and sellers.

A Requirement of Perfect Competition Is That I