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Assignment:
"All models are wrong but some are useful."-George E. P. Box.
We have talked about four market structures with different characteristics: perfect competition, monopolistic competition, oligopoly, and monopoly. When analyzing these market structures, we make assumptions and use different models.
Please pick a market that you are interested in (such as the automobile industry). To describe the market in your example, which model of market structures is the best one? List some reasons to support your argument. Moreover, do you think that there are some limitations of this model? Which feature of this market in the real world cannot be captured by the model? Considering some changes in the market environment, do you think that the model prediction is reasonable?
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