Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 9, Problem 12CQ
To determine
The negative and positive effects of competition in the market.
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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?
What defines market equilibrium? How about market disequilibrium? What are the contrasting proposition regarding economic efficiency and equity?
Discuss how the presence of middlemen affects the operation of competitive markets.
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Microeconomics: Private and Public Choice (MindTap Course List)
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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?arrow_forwardIn what sense is a competitive equilibrium a good or bad thing for a given economy?arrow_forwardAre US markets becoming less competitive and, therefore, less efficient?arrow_forward
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