Perfect competition is a market structure in which there are many buyers and sellers, all of whom have access to perfect information about the prices and products being offered. The products are homogeneous, meaning that all sellers offer the same product, and the prices are determined by the forces of supply and demand
In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In theoretical models where conditions of perfect competition hold, it has been demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price. This equilibrium would be a Pareto optimum.