One: In a perfectly competiWhat is the difference between an economic and accounting profit?tive market, there are a large number of both buyers and sellers, and none of them have the ability to influence the market price through their individual actions. The goods or services traded in a perfectly competitive market are identical or very close substitutes for one another. This means that consumers perceive no difference in quality or features among the products offered by different sellers. All market participants have access to perfect and complete information about prices, products, and market conditions. They are aware of all available alternatives and can easily compare prices and make informed choices. Barriers to entry into the market are low, meaning that new firms can enter the market easily, and existing firms can exit without significant costs