Product Differentiation: None
"No product differentiation", "homogeneous products", "identical products" are all ways of saying the same thing. For an industry to be considered perfectly competitive, the products produced by the different firms in the industry, must be identical in every way that matters to consumers.

This means that there can be no brand names that matter, no color or style differences, etc. Needless to say, this isn't very realistic for most industries. Again, however, this may be the case for agricultural markets, though you may not be aware of it when purchasing milk, eggs, lettuce, flour and many other similar products. For example, eggs seeming virtually identical, or milk in the same brand carton, probably came from many different dairies or farms. The same is probably true of the wheat used to make flour, and the heads of lettuce you purchase.

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