Perfect competition
These characteristics are largely impossible to achieve in reality and there are not many markets that are perfectly competitive. For example, it is unlikely that there are absolutely no barriers to entry and exit as there are always costs involved in setting up a new firm. Also, information is always imperfect and it is not possible for buyers to know exactly the price set by all sellers, and sellers are not willing to share their production methods with their competitors. However, the study of perfect competition is important as it is used to compare with the other market forms.