Final answer:
The correct term is 'ideal technology assumptions,' which refers to including events in an analysis only if the system is expected to respond to them in perfect conditions. This principle is important for system design and evaluation and is analogous to the ideal conditions assumed in perfect competition in economics.
Step-by-step explanation:
The term you are looking for is ideal technology assumptions. In the context of system analysis, this assumption implies that events should be considered for analysis only if the system is expected to respond to them under perfect conditions. This mirrors real-world expectations where systems are designed with the assumption of working under ideal conditions for the purpose of design and evaluation.
When analyzing systems, especially within the scope of engineering or computer simulation models, it is often necessary to assume that the technology operates without flaws. This is because a simulation model can be ideal for addressing systems that appear deceptively simple but are mathematically complex. Hence, incorporating the ideal technology assumption helps in simplifying the analysis.
In a perfectly competitive market, the assumptions include that firms are price takers, have identical products, have no barriers to entry or exit, and possess perfect information. These assumptions are also grounded in ideal conditions and help in understanding the theoretical performance of firms and the choices they make, such as selecting a production technology with the lowest total cost to maximize efficiency.