Why do economists study perfectly competitive markets even though few,if any,markets in the real world are perfectly competitive?
A) Because insights we gain from studying the perfectly competitive market are directly applicable to real markets, even though they are not perfectly competitive.
B) Because the behavior of buyers and sellers can be studied theoretically only in the perfectly competitive market model.
C) Because the perfectly competitive market is a good approximation to many markets in the real world and helps us understand how real markets work.
D) Because the perfectly competitive market is the most relevant model for actual government economic policies.
Correct Answer:
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Q14: Which of the following is true of
Q15: In a perfectly competitive market,_.
A) all exchanges
Q16: Which of the following does NOT have
Q17: A(n)_ is a group of buyers and
Q18: The gasoline market in the United States
Q20: In competitive markets,firms _.
A) coordinate pricing decisions
Q21: The demand schedule for a commodity illustrates
Q22: During the Battle of the Bulge in
Q23: Scenario: A market researcher asks three consumers,
Q24: What are the key features of a
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