Describe what a perfectly competitive market is Solution In perfectly competitive market, there absence of rivalarily among the firms. There are large number of buyers and sellers in this market and all firms produce homogeneous products. Agricultural sector is an example of perfectly competitive market. following are the features of perfectly competitive market: 1. Large number of buyers and sellers in the market 2. Product is homogenous 3. There is free entry and exit to the firms 4. Perfect knowledge of market 5. Perfect mobility of resources 6. Firms are price takers. Since the price is decided by the demand and supply forces.