Competition is healthy for markets. Sometimes the competition can be balanced and at times imbalanced due to various reasons. However, there are times when there is perfect competition and there are unique characteristics defining it. Perfect competition exists where many sellers and buyers are enjoying free entry and exit from the market.
Perfect completion also comes with undifferentiated products devoid of transaction costs with thorough information concerning the price of goods. It’s a theoretical structure of a market with businesses trading a similar product where all firms are price takers. In such a case, the market share does not affect the prices in any way. Again, there is perfect mobility for resources such as labour.