Economists regard a perfectly competitive “free market”as ideal . Would J. P. Morgan have agreed?

Expert Solution

Yes, Would J. P. Morgan have agreed that perfectly competitive “free market”as ideal, because;

In a perfectly competitive market there are numerous buyers and sellers selling homogenous products and no one is able by his own actions to influence the market price, since all have access to full and immediate knowledge of the price at which the trading is currently talking place.

In real world this market really doesn't exist. It's just a ideal market because nowadays a Huge firm's and corporates over the globe firm's competing each other through product differentiation and different other strategies such as marketing mix, pricing policy just to attract customers. And there's also a government regulations in the market as well. So, this just eliminates the existence of free market in this world ie. Perfect competitive market. Hence perfect competitive "free market" is an ideal concept of market.

Rahul Sunny answered 2 years ago

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