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:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation.

Operant Conditioning

A training procedure by which behavior intensity is changed through reinforcement or punishment.

Modeling

A technique in psychotherapy where individuals learn by observing and imitating the behaviors of others.

Reinforcement

The process of encouraging or establishing a pattern of behavior by offering reward or punishment.