This document defines and explains the characteristics of a perfect competition market. Key points include: - A perfect competition market is one where many small producers sell identical products, meaning buyers have many alternatives and no single seller can influence the market price. - Main features include homogeneous products, many buyers and sellers, perfect information and mobility of factors of production. Agricultural markets are often used as examples. - In the short run, firms aim to maximize profits by producing where marginal revenue equals marginal cost. In the long run, firms will exit if earning losses or normal profits and entry will occur if profits are above normal. - The market equilibrium price is determined by the intersection of total industry demand and supply. Individual