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:

Arousal

A condition of being alert and responsive to sensory inputs, both physically and mentally.

Altered States

Mental states induced by various methods, such as meditation, drugs, or hypnosis, that differ significantly from the normal waking consciousness.

Conscious Experiences

The awareness of one’s own internal states, thoughts, and surroundings.

Consciousness

The condition of being conscious and capable of contemplating one's own being, feelings, ideas, environment, and life events.