The correct answer is: D. Prof. Marshall
Perfect competition is a market structure in which there are many buyers and sellers of a homogeneous good or service, and no single buyer or seller has a large enough share of the market to influence the market price. In a perfectly competitive market, firms are price-takers, meaning that they must accept the market price for their goods or services.
The concept of perfect competition was first developed by Alfred Marshall in his book “Principles of Economics” (1890). Marshall argued that perfect competition was the ideal market structure, as it would lead to the most efficient allocation of resources.
However, perfect competition is rarely found in the real world. In most markets, there are some firms that have a larger share of the market than others. These firms are known as “oligopolists”. Oligopolists have some power to influence the market price, but they are not able to set the price completely arbitrarily.
There are a number of reasons why perfect competition is rarely found in the real world. One reason is that it is difficult to find a market with a large number of buyers and sellers. Another reason is that it is difficult to find a market in which the goods or services being sold are homogeneous. Finally, it is difficult to find a market in which there are no barriers to entry or exit.
Despite the fact that perfect competition is rarely found in the real world, it is still an important concept in economics. The concept of perfect competition helps us to understand how markets work and how prices are determined. It also helps us to understand the effects of government intervention in markets.
The other options are incorrect because:
- Mrs. Robinson was an economist who developed the theory of imperfect competition.
- Prof. Leftwitch was an economist who developed the theory of oligopoly.
- Prof. Adam Smith was an economist who developed the theory of laissez-faire economics.