... and leave the market, it must be free to do so. Buyers and sellers possess perfect knowledge of prices. If one firm charges a higher price than the market price, the demand for its product will be zero as buyers buy elsewhere in the market. Hence the firm has to accept the market price if it wishes to sell into the market (i.e. it must be a price taker). All firms must produce a homogenous product. There is no branding of products and products are identical. There are very few industries in the world that approximate to this kind of market structure. One that might is agriculture. In agriculture there is a large number of farmers supplying the market, none of whom is large enough to influence price. It is easy to buy a farm and set up in business. It is equally easy to sell ...

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