(a)
Discuss
the following statement: In the real
world there is no industry which conforms precisely to the economists model of
perfect competition. This means that the
model is of little practical value. (2.5 marks)
Consider the following statement: In the real world there is no industry which conforms precisely to the economists model of perfect competition. This means that the model is of little practical value In a perfectly competitive market there are a large number of buyers and sellers. The products sold in this market are perfectly homogeneous. But in a real world, it is really difficult to find products which are perfectly homogeneous. The products differ in some or other respect from one another
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