Why do economists use the model

Reference no: EM133611676

Assignment:

If the conditions for perfect competition are generally not met, why do economists use the model?

To illustrate how firms maximize profits.
To show the impact on long-run profits when barriers to entry are absent.
To have a reference point to understand what happens when the invisible hand of the market operates unimpeded.
To explain how the Internet has impacted firms' buying practices.

Reference no: EM133611676

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