Perfect Competition

Flash Animation--SR Profit maximization for price takers
http://flashecon.org/profitA/profitA_main.html
As the horizontal demand curve for the perfectly competitive firm moves up or down to reflect price changes, its intersections with the marginal cost curve should dynamically trace out a series of maximum profit output points and the resulting profit or loss.The intersection between the market and the firms should simultaneously show how prices determined by the market affect probability at the firm, which affects the supply through entry and exit.
This flash animation illustrates these econimic processes mathematically in great details=)

According to the theory of "pure and perfect competition," markets are perfect, or ideal, only if they possess the following characteristics:

1. Every industry must have hundreds of firms and potential entrants, each firm with tiny shares of the overall market.
2. Potential entrants must have equal and virtually cost-free access to the industry.
3. Each firm must be completely devoid of any power to influence the price of his product or to alter his market share.
4. Within each industry the products and services of each firm must be virtually indistinguishable from those of other firms; with no need to differentiate one's offerings, ideally there should no promotion or advertising; if there is, it's a waste.
5. Profits are non-existent; if then exist there is an imperfection. Prices would be too high. A firm's price should only cover a its "marginal costs"--those are the variable costs a firm incurs, the extra costs needed to produce extra goods, such as materials, fuel, inventory and labor; in pricing its product a firm does not cover fixed costs, those costs associated with plant, equipment, and patents, because these assets already exist. Since, in fact, fixed capital wears out and must be replaced, the requirement that price cover only marginal costs means that the "ideal" situation is firms showing losses.
6. Finally every firm, consumer and investor must have cost-less and "perfect information" about the state of prices, production, employment and markets as well as of each others' intentions--this despite the fact that it costs time and effort to produce valuable information and despite the "ideal" requirement that there be no advertising.

I'm just wondering: does it mean Perfect competition = NO competiton?
--Silu 想