MACROECONOMICS (LL)
MACROECONOMICS (LL)
21st Edition
ISBN: 9781260186949
Author: McConnell
Publisher: MCG
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Chapter 2, Problem 10DQ
To determine

The concern in the availability of resource in the market economy and command economy.

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In market economies, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the difference?
In market economies, fifi rms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the difference?
why many argue the use of “market” prices will NOT necessarily enable the economy to operate at its production frontier
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