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?