What are the features of perfect competition?

In economics, these are the elements of a perfect competition market

Large number of buyers and Sellers.

A large number of buyers and seller means that the prices would not fluctuate based on offer and demand.

Homogeneous Product.

When the buyer can find the same product with other seller, one given seller would gain nothing by rising the prices because any buyer can go and get the same product with the same quality at a lower cost.

Free entry and exit conditions.

This means that any firm or corporation can come in or out of the market driven by their own decision and that no other firm can pressure them to create monopolies.

Perfect knowledge on the part of buyers and sellers.

This one is a very simple condition, the buyers know in full about the commodity sold and the price prevailing in the market. And  the sellers know the potential sales at various price levels in the market. So there is no need to spend in publicity that would affect the final prices for the buyers.

Perfect mobility of factors of production.

Perfect competition would depend on perfect mobility of factors of production. The factor should be free to move from one use to another easily depending on the remuneration they get.

Absence of transport cost.

If there are no transport costs, the prices do not get affected by them.

Absence of Government or artificial restrictions

The market should be able to control itself without government  or any other external factor.

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