A resident toy manufacturer known as ABC Toys defines their corporation as extremely competitive. However, they do have uncertainties about their close toy manufacturing competitors within their market. ABC Toys uses advertising to highlight the types of toys they manufacture and the quality of their services offered. ABC Toys reacts quickly if other toy manufacturers offer discounts or promotions on their products and services. They also quickly respond to new promotional Advertising produced by their competitors.
Using the example above, would this market be considered to have the right economic characterizations and market fit known as a perfect competition? Please explain.