<Li> Well defined property rights--These determine what may be sold, as well as what rights are conferred on the buyer . </Li> <Li> No barriers to entry or exit </Li> <Li> Every participant is a price taker--No participant with market power to set prices </Li> <Li> Perfect factor mobility--In the long run factors of production are perfectly mobile, allowing free long term adjustments to changing market conditions . </Li>

Who sets the price in a competitive market