QUESTION $14$

The primary application of the model of perfect competition is to:

a$.$

serve as a completely accurate description of the day$-$to$-$day practices of businesses.

b$.$

serve as the basis for stabilization policy.

c$.$

serve as a guide for the operation of the firm on a day$-$to$-$day basis.

d$.$

predict how firms will respond to changes in demand and production costs.