What Are the Assumptions of the Model of Perfect Competition

question 157

Essay

What are the assumptions of the model of perfect competition? Explain why each is important for short-run and long-run equilibrium.

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Definitions:

Unitary Systems

A form of government where a single central government holds the power, with any regional or local governments deriving authority from it.

Dual Federalism

Refers to a political arrangement in which power is divided between the federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government.

Supremacy Clause

A clause in the United States Constitution stating that federal law is the supreme law of the land, taking precedence over state laws and constitutions when there is conflict.

Devolution Theory

The idea or process of transferring powers from a central government to local or regional administrations, often to promote decentralization.