Strictly speaking pure competition has never existed and probably never will then why study it strictly speaking pure competition has never existed and?

Answer 1

It can be shown that pure competition results in low-cost production (productive efficiency)-

through long-run equilibrium occurring where P equals minimum ATC-and allocative

efficiency-through long-run equilibrium occurring where P equals MC. Given this, it is then

possible to analyze real world examples to see to what extent they conform to the ideal of plants

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producing at their points of minimum ATC and thus producing the most desired commodities

with the greatest economy in the use of resources.