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Contextually, neo-classical approach advocates on the existence of perfect competition and market equilibrium. On the other hand, Austrian approach ignores the assumption claimed by the neo-classical approach and emphasizes on claiming that there exists nothing static at the marketplace as the market itself is highly dynamic (Block & et. al., 2002). Similarly, Post-Keynesian approach also firmly rejects the assumption of neo-classical approach and further states that market is about uncertainty and firms at the market place are totally unaware of their future (Lee, 1986). Based on these understandings, the paper intends to identify and assess the various implications of these three approaches in a more elaborated form. Furthermore, the paper also attempts to compare and critique the neo-classical approach in the light of Austrian and Keynesian thoughts of economics.
Neo-Classical view of competition is based on the assumption of perfect competition economic conditions. The assumptions of perfect competition can be illustrated as the appropriate conditions which need to be present in the market place in order to ensure the existence of situations acclaiming a perfectly competitive industrial structure (Hunt & Morgan, 1995). Neo-Classical theory advocates the existence of large numbers of sellers in a relatively small market size offering homogeneous products to a significant range of consumers. Furthermore, the theory tends to ensure that all the participants at the market place possess a perfect knowledge of the commodity offered, including price and related costs of each good/service. The theory also intends to achieve the perfect mobility of factors of productions. As a result, during the existence of such conditions, both the producers and customers are in the position to influence the price of the commodities offered at the market place. It is worth mentioning that due to the presence of large
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