Why is the perfect competition model unrealistic?
A) Self-seeking individuals actively seek out ways to limit competition to increase personal gains.
B) Monopoly is more prevalent in the economy than is perfect competition.
C) Homogeneous products are numerous in the economy.
D) The model assumes that market structures are dynamic.

Question

Quizplus · Accepted Answer

Perfect competition assumes that no individual can influence the market, but in reality, individuals often seek ways to limit competition to increase their own gains, making the model unrealistic.

Why Is the Perfect Competition Model Unrealistic