Why model something that does not exist

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Why Model Something That Does Not Exist? The purely competitive firm does not exist in the real world anymore having disappeared in the USA by the early 1930's at the latest. The question is: so why do we model it in almost every textbook in Economics? What use does it serve? Discuss the relevance of the characteristics of the purely competition firm. Can you think of other things in other fields that we model, that do not exist anymore?

Reference no: EM131009700

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