Assumptions of a perfect competition

• 1?


  many buyers and sellers in the market
• 2?


  no one has the power to influence the market
• 3?


  freedom of entry and exit
• 4?


  homogeneous goods (substitutable in nature)
• 5?


  independency - buyers/sellers consider only their own position in making decisions
• 6?


  clearly defined + enforceable property rights -> buyers/sellers can consider all costs and benefits when making decisions
• 7?


  everyone has perfect information