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The topic relates to a common and major portion of Economics. It refers to a perfect competition market structure with large number of buyers and sellers with homogenous products. The type of market is mythical and is based on a lot many assumptions.
- The market allows free entry and exit to as many customers at anytime of the day.
- Furthermore, even the resources and products are free to move in and around the market.
- In this type of market even the consumers and producers are assumed to be well knowledgeable about market conditions.
- There’s a single price prevailing all over the market.
- And there’s no transportation cost, either.
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