"Extend your intuition to imagine that you have perfect competition where there are infinitely many identical goods all competing to the lowest price either no differentiation, and people will price at zero profit. "
But this is not reality.
I doubt doing abstractions like these are helpful in understanding anything, when the base is so far off.
Right, never said that was attainable or good. The point is that some people view perfect free markets as the ideal, and this is a move towards that, so people might view the market as getting g fixed rather than being broken.
But this is not reality. I doubt doing abstractions like these are helpful in understanding anything, when the base is so far off.