In a perfect competition market all firms sell an identical product and buyers have complete information about the product. In this market structure neither of the firms cannot control the market price of their product and all firms have a relatively small market share.
Perfect competition is the ideal and the best form of market structure because it is the most efficient market structure. It achieves efficiency because of the efficient allocation of resources: the profit-maximizing quantity of output produced by a perfectly competitive firm results in the equality between price and marginal cost.
