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 22, Problem 13CQ
To determine
Describe the strong incentives of the firms in competitive market to serve the consumers’ interest.
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Do business firms operating in competitive markets have a strong incentive to serve the interest of consumers? Are they motivated by a strong desire to help consumers?
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Economics: Private and Public Choice (MindTap Course List)
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
How is the buying behavior in business markets impacted by different types of demand? Identify the three types of demand (derived, Inelastic, Fluctuating), illustrate each demand with examples with product pictures, and how they affect buying behavior?
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How do firms or business in a competitive market decide what prices are and how does the economy look like? What if they are all selling the same product?
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In economics, the operation of the competitive market model (Perfect Competition) produces efficient uses of resources and meets people’s needs and wants; in other situations, markets fail to satisfactorily use resources efficiently and meet the needs and wants of people. Discuss, demonstrating your understanding of how, why and when markets work well or fail and what can governments do when markets fail. Use diagrams to help your explanation and argument.
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Which statement is true?
a.
Socio-cultural factors do not determine the goods that society is likely to value
b.
Socio-cultural factors do not affect the business
c.
Trends in socio-cultural factors may create new opportunities for a company
d.
Trends in socio-cultural factors guarantee the increase of company profit
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Friedrich von Hayek won the Nobel Prize in Economics in 1974. In awarding the prize, the Academy specifically referred to his conclusion quoting the Academy, not Hayek "that only by far-reaching decentralization in a market system with competition and free price-fixing is it possible to make full use of knowledge and information."
What did the Academy mean?
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Competitive Trends in the U.S. Economy) William Shepherd’s research of U.S. industries showed a clear trend in the competitiveness of the U.S. economy between 1958 and 2000. Is the economy growing more or less competitive, and how did Shepherd explain this trend?
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