Perfect Competition in EC

EC supports efficient markets and could result in almost perfect competition. In such markets, a commodity (undifferentiated product) is produced when the consumer's willingness to pay equals the marginal cost of producing the commodity, and neither sellers nor buyers can influence supply or demand sellers not buyers can influence supply or demand conditions individually. The characteristics necessary for perfect competition are the following :

1. Many buyers and sellers must be able to enter the market at no entry cost (no barriers to entry).
2. Large buyers or sellers are not able to individually influence the market.
3. The products must be homogeneous (no product differentiation). (For customized products, there is no perfect competition.)
4. Buyers and sellers must have comprehensive information about the products and about the market participants' demands, supplies, and conditions.

EC could provide, or come close to providing, these conditions.