--%>
Assignment Help - homework help

Competition is the essential despot of the market economy

Evaluate and explain the statements: “Competition is the essential despot of the market economy”.

E

Expert

Verified

Competition provides discipline in 2 ways:

1st it pressurize firm to look for the least-cost manufacture methods or face being driven out of business by their rivals.

2nd it avoid victorious manufacturer from charging whatsoever marketplace will bear. Prices of competition kept at level anywhere total revenue production includes a profit. As in a cut-throat market situation it is hard process and difficult to accomplish the equivalent results, this shown Experience.

   Related Questions in Business Economics

  • Q : Introduction of the term Control

    Give a brief introduction of the term Control Principle?

    		•
  • Q : What do you mean by Shuffling the Deck

    What do you mean by Shuffling the Deck?

    		•
  • Q : Conception of the Invisible Hand by

    Conception of the “Invisible Hand” by Adam Smith relies on mechanisms like those as underpin: (1) William Stanley Jevons’ “sunspot” theory of business cycles. (2) the biological concept of Homeostasis. (3

    		•
  • Q : Estimate the impact of education on

    Using a random sample of 670 individuals for the population of people in the workforce in 1976, we want to estimate the impact of education on wages. Let wage denote hourly wage in 1976 U.S. dollars and let educ denote years of schooling. We obtain the following OLS regression line: wage = -0.54

    		•
  • Q : Determine the productively efficiency

    To be productively efficient, a country should: (w) maximize the satisfaction attainable from its budget. (x) be concerned only with macroeconomic analysis. (y) concentrate on removing scarcity. (z) maximize the value of output produced through specif

    		•
  • Q : Depreciation of the euro change the

    If the European euro declines in value (depreciates) in the foreign exchange market, would it be easier or harder for the French to sell their wine in the United States?  Suppose you were planning a trip to Paris.  How would the depreciation of the euro chan

    		•
  • Q : Distinguish clearly between a plant

    Distinguish clearly between a plant, a firm, and an industry?

    		•
  • Q : Economic sense production methods

    Evaluate and explain the statements: “In the economic sense production methods are the most efficient methods, once resource prices are considered and are lesser in sense of engineering”.

    		•
  • Q : External factors which influencing the

    Write down the external factors which influencing the capital structure?

    		•
  • Q : What are the benefits and costs of

    What are the benefits and costs of Marginalism?

    		•