Posted: April 12th, 2016

There are no differences in the product or services offered across suppliers, ensuring homogeneity.?

perfectly competitive market structure is one where there are potentially infinite numbers of buyers and sellers. What this ensures is that no single seller, single buyer or a group may dictate the commodity price. Each participant therefore is a “price taker”.
All buyers have the willingness and ability to pay a specific price; likewise, all producers have the ability to produce or supply the given product at a specific price (Petri, 2004).
Another characteristic of competitive markets is that it is extremely easy to enter or exit such a perfectly-competitive market: there are zero entry barriers or exit barriers. The factors of production are perfectly mobile in a larger time frame allowing adjustments.
Such markets are also characterized by conditions of perfect information: all consumers and producers are perfectly aware of quality, associated price and production methods. There are no associated transaction costs involved here when goods are exchanged. There are no differences in the product or services offered across suppliers, ensuring homogeneity.