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:

Self-directed Work Teams

Groups in which members work collaboratively without a traditional managerial supervision, making decisions and managing their operations independently.

Leadership Substitutes Theory

A theory proposing that certain characteristics of the situation, task, or subordinates themselves can substitute for leadership, rendering it unnecessary.

Servant Leadership

A leadership philosophy that focuses on serving the needs of others first, prioritizing the well-being and development of employees over other considerations.

Path-goal Leadership Theory

A theory suggesting that the leader's role is to clear the path towards the goal by addressing obstacles and providing support to increase follower motivation.