(i) Large number of sellers: The implication is that the proportion of total output produced by a single seller is so insignificant that the seller cannot influence the market price by his own actions by changing the quantity of output it produces. He has no option but to sell at the price determined at the industry level. (ii) Homogeneous products: In a perfectly competitive market, buyers treat the product produced by different firms as homogenous. So, they are willing to pay the same price for products of different firms. No firm, therefore, can charge a price higher than the market determined price.