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Classmate 1) Even though perfect competition doesn't exist in the real world, I believe that studying this concepts is a starting point to compare with real-life market situations. By understanding this simple model, we can better analyze the complexities of actual markets, including why some companies dominate their industries and how government policies can affect the economy. It's a foundational tool that makes the rest of economics easier to learn. In my opinion the reason why this model is still in every textbook is that the idea is to teach students the essentials of economics. This essential step helps us to build a strong foundation in economic understanding.

Classmate 2)Although perfectly competitive firms are unlikely in practice, we model them in economics textbooks because they provide a theoretical foundation for comprehending the efficiency and behavior of markets. Perfectly competitive markets offer a simplified framework for examining important economic ideas like supply and demand, equilibrium pricing, and consumer and producer surplus, even if they might not exist in reality in their pure form. Students can learn about the ideal circumstances required to achieve allocative efficiency - the allocation of resources in a way that optimizes the welfare of society as a whole - by studying perfectly competitive marketplaces. These models also aid in the explanation of the idea of economic equilibrium, which is the state in which the relationship of supply and demand determines exchange rates and quantities. In the end, even though practically speaking perfectly completely competitive markets don't exist, studying them lays the groundwork for examining market dynamics in the actual world and comprehending how market structures affect economic results.