The assumptions of perfect competition _____.
A)are satisfied in most real-world markets
B)do not readily apply to most real-world markets
C)are hardly ever satisfied and therefore make the study of perfect competition unwarranted
D)if satisfied,lead to equitable outcomes

Question

Quizplus · Accepted Answer

The assumptions of perfect competition do not readily apply to most real-world markets. While perfect competition is a useful theoretical benchmark for economists, real-world markets often have imperfections such as monopolies, product differentiation, and barriers to entry that prevent perfect competition from occurring.

The Assumptions of Perfect Competition _____