Marketing Paper About Perfectly Competitive Model

Perfectly Competitive Model
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Perfectly Competitive Model
Perfectly Competitive Model and Biblical Worldview
Perfectly competitive economic system can be defined as a market structure that fulfills a number of basic tenets such as, huge number of sellers and buyers, free entry and exit of businesses, firms produce homogeneous products, limited government intervention, and consumers have perfect knowledge. From a biblical perspective, perfectly competitive model is a good benchmark since all players in the market are provided with opportunities that are relatively similar to conduct their businesses. Anderson (2001) argues that economics is a crucial factor in an individual’s Christian overview since there is a powerful connection between Christian thought and economics. For instance, in Thomas Aquinas “Summa Theologica”, there are numerous sections of his theological works that are directly devoted to economic and business issues. Although perfectly competitive market structures may result to negative factors such as poverty, instability, and huge gap between the rich and the poor, studies indicate economics is part of Christian thinking.
The bible, in reality, talks of economic issues with entire sections in the book of Proverbs presenting numerous parables where Jesus examined economic matters. Some Christians believe that the Bible has encouraged a system of individual initiatives and responsibilities, and ownership of private property, all of which are tenets of a perfectly competitive model. This can befound in scriptures such as Jeremiah 32:43–4; Isaiah 65:21–2; Ephesians 4:28; and Acts 5:1–4. For instance, Ephesians 4:28 says that “Let the thief no longer steal, but rather let him labor, doing honest work with his own hands, so that he may have something to share with anyone in need (allaboutworldview.org, 2017). However, it is important to note that Christians can support different kinds of economic systems, but there is no system that can be described as entirely perfect in terms of biblical teachings and the Kingdom of God.
Perfectly Competitive Model as a Guide for Public Policy
Governments across the world have established principles and policies of a perfectly competitive market structure and these policies are usually used as a guide for public policies. The current generation which was born and brought up in a distinctiveeconomic system where social order has been entrenched may take for granted the factors that are necessary for the creation and distribution of wealth (Johnson, n.d). However, authorities tend to adjust the existing perfect economic model to bring conformity and ensure that public policy provides a better economic system. Studies have shown that policies that are implemented by the government play an instrumental...