Which of the following is true?

Question

Quizplus · Accepted Answer

While it is true that few real-world markets meet all the conditions of perfect competition, the model is still useful in analyzing market forces and their effects. It provides a benchmark for comparison and helps identify areas where markets deviate from efficiency. Therefore, option C is the most accurate statement. Option A is incorrect because the usefulness of a model does not depend on whether it matches real-world conditions exactly. Option B is also incorrect because the model of perfect competition is often used in practice, such as in antitrust analysis. Option D is not accurate because perfect competition is an idealized model, and no real-world market can perfectly match its assumptions.

Which of the Following Is True