We study the simple model of competitive markets because it helps to:
A) provide useful insights to markets that are not perfectly competitive.
B) show how the government controls the economy.
C) indicate whether buyers or sellers matter more.
D) show how poorly the economy actually functions.

Question

Quizplus · Accepted Answer

Studying the simple model of competitive markets helps provide useful insights to markets that are not perfectly competitive. It does not necessarily indicate how the government controls the economy, which group (buyers or sellers) matters more, or how poorly the economy functions.

We Study the Simple Model of Competitive Markets Because It