Homogeneous Goods

Perfect Competition
A market condition wherein no buyer or seller has the power to alter the market price of a good or service. Characteristics of a perfectly competitive market include a large number of buyers and sellers, a homogeneous good or service, equal awareness of prices and volume, absence of discrimination in buying and selling, total mobility of productive resources, and complete freedom of entry. Perfect competition exists only as a theoretical ideal, also called pure competition.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.