Perfect competition means that there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods.

In a perfectly competitive market there are thousands of sellers, easy entry, and identical products. Long-run equilibrium in a perfectly competitive industry occurs after all firms have entered and exited the industry and seller profits are driven to zero

perfect competition — each firm faces many competitors that sell identical products. perfectly competitive firm — a price taker, which means that it must accept the equilibrium price at which it sells goods. short-run production period — when firms are producing with some fixed inputs. exit — the long-run process of firms reducing production and shutting down in response to industry losses.