REALISM OF PERFECT COMPETITION
The assumptions of perfect competition are obviously at variance with the conditions which
actually exist in real world markets. Some markets approximately conform to individual assumptions, for example, the stock exchange is characterized by a fairly free-flow of information but the information requires expertise to grasp. However no markets exactly conform to the assumption of the model, with peasant agriculture probably the nearest to the mark.
We however study the model of perfect competition to enable us to see: