Which of the following best describes a perfectly competitive market?

A perfectly competitive market is characterized by many sellers offering homogeneous products, meaning the goods offered by different sellers are virtually identical. This feature ensures that no single seller can influence market prices because consumers can easily switch between suppliers without any perceived differences in the products. In such markets, competition drives prices down to the level where only normal profits are earned, as new firms can enter freely when profits are made, and exit when losses occur.

The presence of many sellers contributes to the competitive nature of the market, allowing supplies and prices to adjust to consumer demand effectively. While the other options describe different market structures—such as monopolies or oligopolies—only the presence of many sellers with homogeneous products aligns with the defining characteristics of perfect competition. Hence, the choice that describes a perfectly competitive market accurately emphasizes the number of sellers and the uniformity of the products they sell.