Perfect Competition: Characteristics a Many buyers and sellers and each is so small that no one can affect price individually (for sellers, no one has large enough market share) All firms produce a homogeneous product (identical / standardized) at least consumers think so a Free entry and exit each firm has complete knowledge about production and cost; no regulation limitPerfect Competition: Characteristics ◼ Many buyers and sellers and each is so small that no one can affect price individually (for sellers, no one has large enough market share) ◼ All firms produce a homogeneous product (identical / standardized) at least consumers think so ◼ Free entry and exit each firm has complete knowledge about production and cost；no regulation limit