The Perfectly Competitive Model Makes a Lot of Fairly Unrealistic

question 38

Multiple Choice

The perfectly competitive model makes a lot of fairly unrealistic assumptions.Why do economics textbooks still talk a lot about this model?

• A) Many markets are close to being perfectly competitive.
• B) It is an important model to use as a benchmark to compare other markets structures to.
• C) Perfectly competitive markets maximize societal welfare.
• D) All of the above.

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Definitions:

Sacrifice Ritual

Ceremonial acts performed in various cultures and religions involving the offering of gifts, and often the life of an animal or symbolic item, to a deity or higher power for the purpose of divine favor or atonement.

Aryan Religion

The religious beliefs and practices associated with the Indo-European peoples known as Aryans, precursor to major religions such as Hinduism.

Soma

In Vedic tradition, Soma is a ritual drink of importance among the early Indians, also referred to a deity associated with this drink.

Palace

A grand residence, especially the home of a head of state or some other high-ranking dignitary, royals, or bishops.