Why Is the Perfect Competition Model Unrealistic

question 39

Multiple Choice

Why is the perfect competition model unrealistic?

• A) Self-seeking individuals actively seek out ways to limit competition to increase personal gains.
• B) Monopoly is more prevalent in the economy than is perfect competition.
• C) Homogeneous products are numerous in the economy.
• D) The model assumes that market structures are dynamic.

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Definitions:

Kohlberg's Model

A theory of moral development that outlines how individuals progress through different stages of moral reasoning.

Cognitive Moral Development

A theory by Lawrence Kohlberg that explains the stages individuals pass through as they develop in moral reasoning.

Handle Situations Ethically

Approaching and resolving scenarios with moral principles, often considering fairness, honesty, and respect for others.

Hurt Companies

Companies that have been significantly impacted or damaged by internal problems, market conditions, or external events, affecting their performance and stability.