3 ms·

Those aren't free market models, those are 'perfect competition' models. They're not the same thing.

• themagician 9y ago
  They are. A free market model typically has five basic assumptions built into it. See my comment above.
  • frgtpsswrdlame 9y ago
    No. >Pick up any text book and before you even get to supply and demand you will go through the "assumptions" that must be true in order for a free market to function. You will go through the assumptions that must be true in order for a market to be in a state of perfect competition. Most econ books should be pretty good about this lanugage. 'Free market' is actually more about political philosophy than economics although it's usually cloaked in the language of normative economics.
    • themagician 9y ago
      Perfect competition is typically listed as an assumption of a free market. I mean, at least when I was a TA.