A market in which there are large numbers of buyers and sellers, a homogeneous product, and free entry and exit, but where perfect knowledge and low transaction costs are not assumed, is best termed:

1. Three conditions define pure competition: many buyers and sellers, homogeneous product, free entry and exit. 2. Perfect competition adds further conditions: perfect knowledge, very low transaction costs, and price taking. 3. The case described stops at the three pure-competition conditions. 4. Hence it is pure competition, not the fuller perfect competition. _Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit III "Price-Output Determination under Different Market Forms", p.1_