Perfect competition

In a perfectly competitive market: there are large numbers of buyers and sellers; the quantity of the market products bought by any buyer or sold by any seller is so small relative to the total quantity traded that changes in these quantities leave market price unaffected; the products are homogeneous; there is no reason for any buyer to prefer a particular seller and vice versa; and all buyers and sellers have perfect information about the prices in the market and the nature of the goods sold.