- Lots of competitors
- No barriers to entry
- No barriers to exit
- All competitors have small Market Share
- All must sell more or less at the same price
- They sell similar products often-times they are undifferentiable (no logo, can’t remember the business that sold it)
Examples
- Barber shops
- Food trucks
- Key cutting
Formal Definition
- is marginal revenue
- is marginal cost
- is price