Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 8 - Pure Competition in the Short Run - Questions - Page 178: 2

Answer

We study it to get a better understanding of the other market types.

Work Step by Step

A model of a perfect competitive market is relatively easy to study. By understanding how a perfect competitive market works, we are actually understanding the basic concepts of how the other markets should work as well. Basically, studying a perfect competition makes the study of much complex market structure, like oligopoly, much easier.
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