What are the assumptions of perfect competition?

Large number of firms and consumersEach firm is a price-taker and hence has no price setting powerThe price is determined in the market by supply and demandProducts are homogenous and are therefore perfect substitutesThere are no barriers to entry or exit and the cost of advertising and transport is assumed to by zero- there is complete mobility of resourcesAll firms and consumers have perfect informationNormal profits are made in the long runNo externalities of production or consumption

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