In 1776 Adam Smith wrote, "An Inquiry into the Nature and Causes of the Wealth of Nations" or as it is commonly referred to as, 'The Wealth of Nations." This book has served as the foundation of the capitalist or free market system. He described in the book what is know as the perfectly competitive model. Describe the assumptions behind the model. He argued that perfectly competitive markets led to the most desirable outcomes for society based on the long-run outcomes of it. Explain the long-run outcomes of the model and describe whether you think the model is still applicable in today's world.