Question

Economists generally believe, and teach their students, that perfectly competitive markets (in the sense that we use the term technically) are the best. Why is this the case and provide an example of a competitive market from your experience and what you see as its benefits. Please do not confuse the technical definition of 'competition' that we economists use with behaving in a competitive manner which is what all business do, even those in very non-competitive markets.

Name: economists generally believe and teach their students that perfectly competitive markets in the sense that we use the term technically are the best why is this the case and provide an exampl 09555
Uploaded: 2022-08-15T07:28:31-08:00
Duration: 4 min 28 s
Channel: Jennifer Stoner
Description: economists generally believe and teach their students that perfectly competitive markets in the sense that we use the term technically are the best why is this the case and provide an exampl 09555

          Economists generally believe, and teach their students, that perfectly competitive markets (in the sense that we use the term technically) are the best. Why is this the case and provide an example of a competitive market from your experience and what you see as its benefits. Please do not confuse the technical definition of 'competition' that we economists use with behaving in a competitive manner which is what all business do, even those in very non-competitive markets.

Added by Carla E.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Jennifer Stoner

08/15/2022

Step 1

In perfectly competitive markets, there are many buyers and sellers, homogeneous products, perfect information, and low barriers to entry and exit. This leads to price taking behavior, where no individual buyer or seller can influence the market price. As a Show more…

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Economists generally believe, and teach their students, that perfectly competitive markets (in the sense that we use the term technically) are the best. Why is this the case and provide an example of a competitive market from your experience and what you see as its benefits. Please do not confuse the technical definition of 'competition' that we economists use with behaving in a competitive manner which is what all business do, even those in very non-competitive markets.