Some characteristics of competitive market are:
- Competitive market includes many buyers and sellers so prices align closely with supply and demand.
- It allows free entry and exit so firms adjust output without facing barriers.
- It offers identical products so buyers switch easily between sellers.
- It provides perfect information so participants make fully informed decisions.
- It makes each firm a price taker so no seller can influence the market price.
- It consists of many small firms so industry output responds quickly to demand changes.