A market, in which there are a large number of firms, homogeneous product, infinite elasticity of demand for an individual firm and no control over price by firms, is termed as________.

A market characterized by a large number of firms, homogeneous products, and no individual control over price is defined as perfect competition [2]. In this market structure, firms are 'price takers' because their individual output is too small to influence the overall market price [3]. Because all firms sell identical (homogeneous) products, any firm attempting to charge a price above the market rate would lose all its customers, resulting in a horizontal demand curve for the individual firm [1]. This horizontal demand curve signifies that the price elasticity of demand for a single firm is infinite [1]. Unlike monopolistic competition or oligopoly, where firms possess some degree of pricing power through product differentiation or market concentration, perfect competition assumes perfect information and free entry/exit, ensuring that no single entity can dictate market terms [3].

Sources

1. [1] Microeconomics (NCERT class XII 2025 ed.) > Chapter 4: The Theory of the Firm under Perfect Competition > Chapter 4 > p. 54
2. [2] Microeconomics (NCERT class XII 2025 ed.) > Chapter 4: The Theory of the Firm under Perfect Competition > 4.1 PERFECT COMPETITION: DEFINING FEATURES > p. 53
3. [3] https://www.investopedia.com/terms/p/perfectcompetition.asp