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Perfect Competition.

 Perfect competition is a form of the market where there is a large number of buyers and sellers of a commodity. Homogeneous product is sold with no control over price by an individual firm.
In perfect competition, prices reflect the complete mobility of resources and freedom of entry and exit, full access to information by all participants, homogeneous products, and the fact that no one buyer or seller, or group of buyers or sellers, has any advantage over another.

Features of Perfect Competition

1.Large Number of Buyers and Sellers 

2.Homogeneous Product

3.Perfect Knowledge

4.Free Entry and Exit of Firms Perfect Mobility

5. A Firm under Perfect Competition is a Price Taker, not a Price Maker.

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'Market' refers to the whole area with in which buyers and seller of a good or service are scattered.

Type of markets are : Perfect competition and imperfect competitions like monopoly , oligopoly and monopolistic competition.