what is perfect competition in economics

Perfect competition is a theoretical market structure in economics where there are many buyers and sellers, and no single buyer or seller can influence the market price. In perfect competition, all producers and consumers have full and symmetric information, and there are no transaction costs. The products sold by each firm are identical, and there are no barriers to entry or exit for firms. Perfect competition is an idealized framework for a market economy, and while it provides a useful model for explaining how supply and demand affect prices and behavior, it rarely occurs in real-world markets. The agricultural industry is an example of an industry that comes closest to exhibiting perfect competition.