The <a href=”http://en.wikipedia.org/wiki/Perfect_competition”>assumptive models of perfect competition</a> are based on presumed conditions of a market that are expected to be fulfilled. In relation to market prices, these would flow along with the general equilibrium and move in accordance to any changes.
There are six determining factors used to calculate conditions within a market and the competition involved. They include atomicity (markets sets prices), homogeneity (all market products are the same), complete and perfect information (prices set are known to companies and consumers), equal access (production technology and resources are accessible to all), free entry (freedom of companies to exit and enter any market) and the independence of sellers and buyers.