Petfect competition and ita features

Perfect competition is a form of the market where there is a large number of buyers and sellers of a commodity. Homogeneous product is  sold and its price is determined by the forces of market supply and market demand. An individual buyer or seller has no control over the price.  

Features of perfect competition:

1.  Large number of small buyers and sellers of a commodity: under perfect competition there is a large number of buyers and sellers. The number of buyers are so large that the demand of an individual buyer is only a small fraction of market demand for a commodity. Likewise the number of sellers are so large that the supply of an individual seller is only a fraction of the market supply.
2. Homogeneous product: The product under perfect competition is homogeneous. A product is said to be homogeneous when each unit of it identical in size, shape, color and weight. So that, the buyer do not find any difference in product as sold by different firms in the market.
3. Freedom of entry and exit: Under perfect competition a new firm is free to enter the industry and an existing firm is free to leave it.