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Perfect competitive economy..

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Perfect competitive economy..

Post by sujin007 on Thu Dec 06, 2012 4:00 pm

Microeconomists believe supply and demand can only be balanced through perfect competition, where no one individual or entity possesses the power to influence the price of a particular good or service.

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Re: Perfect competitive economy..

Post by sujin007 on Thu Dec 06, 2012 4:02 pm

In a perfectly competitive economy, the complete cost of a product is factored into its price, and the product is sold for maximum profit based on its demand.

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Re: Perfect competitive economy..

Post by sujin007 on Thu Dec 06, 2012 4:03 pm

In theory, perfect competition maximizes both consumer utility and company profits while ensuring resources are used in the most efficient manner.

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Re: Perfect competitive economy..

Post by sujin007 on Thu Dec 06, 2012 4:05 pm

Since microeconomists generally aren’t concerned with promoting any sort of political philosophy, they tend to recommend whatever they think will most likely achieve perfect competition.

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Re: Perfect competitive economy..

Post by sujin007 on Thu Dec 06, 2012 4:07 pm

Suggestions may range from anti-trust and right-to-know laws to government-created markets and social welfare expansion. It varies with the different economist and perspectives..




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