John Maynard Keynes

Essay by jcolvin320College, UndergraduateA+, November 2014

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Jim Colvin

Rashel Shultz


November 7, 2014

Perfect Competition

When looking for an example of perfect competition in the real world, it is not easy to find an example that fits every aspect of its definition. A good example of perfect completion that meets the general idea that is intended is with racing tires. The intent of perfect competition is to have many manufactures produce a quality product or service for the best price. What better example of a product produced in a market of perfect competition than a product used in a competitive sport?

Tires being a crucial variable in the performance of a racecar, the racers are going to always be looking for which ones are the best to have an edge over their competitors. But especially when it comes to local racing they do have a budget they have to stay within so they need that good tire for an affordable price.

Each class of racing has is own rule that specify what general size tire they are allowed to use. So all the cars appear to have the same tires on them. In most cases the racers have the option to choose what manufacturer they purchase their tires from. A few of the most common racing tire manufacturers are Hoosier, Goodyear, and American Racer. For these companies it's their job to research and develop a tire that out performs their competitors' tires.

At first it may not seem like there would be a lot of ways to improve the basic function of a tire, to hold the car off the ground, hold air, and roll. But in this situation the tire needs to perform well in areas such as traction, side bite, and ability to resist wear. The manufacture has to take many things into...