The characterstics of the perfectly competitive firms are given
below.
- Large number of buyers and sellers.
- The firms are price takers- in the perfect competition the firm
has got no control over the market price.
- There is freedom of entry and exit.
- The product in the market is homogenous or identical.
- There is perfect knowledge market condition. - Both the buyers
and the sellers know the markets very well.
- Zero transaction costs.
- The firms earn zero economic profits in the long run.