Market Equilibrium Pt. 2

MARKETS RECONCILE THE DESIRE OF CONSUMERS FOR A GOOD WITH THE ECONOMIC COSTS OF PRODUCING IT.

MARKETS PRESERVE THE GREATEST AMOUNT OF INDIVIDUAL FREEDOM IN ALLOCATING SCARCE RESOURCES TO ALTERNATIVE USES AND IN FACILITATING CHOICE AMONG ALTERNATIVES WITHOUT COERCION–CHOICE TRULY BASED ON A COMPARISON OF BENEFIT WITH COST.

MARKETS PROVIDE PRICE SIGNALS AND PROFIT SIGNALS TO BUYERS AND TO SELLERS, AS THE MOST EFFICIENT COORDINATION MECHANISM POSSIBLE. TO DIRECT RESOURCES TO THEIR MOST DESIRED USES AND TO DIRECT FIRMS TO THOSE ACTIVITIES AND PRODUCTS WHICH ARE MOST DESIRED BY CONSUMERS.

Class Notes | Clint Johnson |  Economics & Finance | Departments & Majors
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