Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 16, Problem 5CQ
To determine
Describe whether competition is important for the efficient use of resources.
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why do firms exist to produce and sell as much as possible?
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Chapter 16 Solutions
Economics: Private and Public Choice (MindTap Course List)
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- Why are production and competitiveness important in today's economies?arrow_forwardIf the stock market in the United States is efficient, how do you explain the fact that some people make very high returns? Would it be more difficult to reconcile very high returns with efficient markets if the same people made extraordinary returns year after year?arrow_forwardHow does the Government examine Cost-Benefit analysis? What are the Characteristics of a Purely Competitive Market?arrow_forward
- How does self-interest help achieve society’s economic goals? Why is there such a wide variety of desired goods and services in a market system? In what way are entrepreneurs and businesses at the helm of the economy but commanded by consumers?arrow_forwardHow do markets operate to bring product into existence? How does that relationship affect supply and demand for the various markets involved? In what ways has the change in supply and demand affected the market? What enabled the many participants in the production of this product to cooperate, and how has this affected the production of the product?arrow_forwardWhat is one industry, firm, or product that has disappeared from the market as a result of allocative efficiency and creative destruction and replaced by another industry, firm, or product? And what are some pros and cons?arrow_forward
- Make a list of the ways competitiveness can affect the quality of life.arrow_forwardWhat factors contribute to achieving allocative efficiency in a competitive market, and how does it benefit both consumers and producers?arrow_forwardRelate why economic profits occur and how profits, along with losses, allocate resources among alternative uses.arrow_forward
- How will you explain production as a source of economic well-being?arrow_forwardAccording to our textbook, “Business firms are often the best way to organize our limited resources for production. For many types of production, firms can produce more efficiently (at lower cost) than households.” Explain why business firms can produce more efficiently than households can.arrow_forward
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