CRITIQUE the ASSUMPTIONS of MAINSTREAM THEORY Essay

CRITIQUE the ASSUMPTIONS of MAINSTREAM THEORY - Essay theoretical accountThe market also experiences power centers, such as in monopolies, oligopolies, and government regulations, for price determination. Mobility of factors of production and towering levels of awareness also identify imperfect market, contrary to the theorys assumption. Sellers are for example dissolve to move into and out of a market ground on presumed profitability levels.The assumption that consumers are ordered in their preferences is also not valid. Existence of sales promotion strategies such as advertisement continues because of their victory in influencing consumers preferences towards marketed products. Consumers preference also depends on environmental factors such as peer influence, weather conditions, and ghostly and political ideologies and is therefore a variable in individual consumers subject to environmental changes.The theorys assumption of homogeneity of factors of production is an inaccurat e assumption because the factors of production can be classified based on their distinct characteristics. Land, for example, has distinct features from labor and capital to dispute the homogeneity assumption. Each of the factors of production tho lacks homogeneity within it and has sub classes with distinct