Respuesta :
If a business manager does not know the definition of marginal cost , Yes , it will contradict the theory of perfect competition because it provides a useful model for explaining how supply and demand affect prices and behavior in a market economy.
What do you mean by perfect competition?
Perfect competition is a type of market where there are many buyers and sellers, and all of them initiate the buying and selling mechanism. There are no restrictions and no direct competition in the market. It is assumed that all the sellers are selling identical or homogenous products.
Perfect competition is a theoretical market structure where direct competition does not exist between firms or sellers. Instead, many sellers (also buyers) are present in the market that simultaneously sell an identical product at the market price. Thus, each seller has a very small share in the market with limited control over market prices.
Perfect competition is considered the ideal market scenario as it allocates the available resources most efficiently. It is also referred to as pure competition.
To know more about perfect competition from the given link:
https://brainly.com/question/1488584
#SPJ4
