--%>
Assignment Help - homework help

Competitive market economy will make the needed adjustments

Briefly explain how the competitive market economy will make the needed adjustments to reestablish an efficient allocation of society’s scarce resources?

E

Expert

Verified

They will also be able to pay higher wages and bid workers away from alternative employment.  Bagel manufacturing firms will also be willing to pay higher prices for flour and other ingredients.  They will be likely to buy additional capital equipment and expand their facilities.  Cereal manufacturers will cut production, lay off workers and reduce purchases of materials.  They may have to close facilities and offer their used capital equipment and unneeded land for sale at reduced prices.

   Related Questions in Business Economics

  • Q : Problem regarding to taxes and market

    The new supply and demand curves within University City are S0 and D0. But after the county commission imposed a $3 per six-pack excise tax upon beer, monthly sales of six-packs: (w) fell to 10,000, and buyers paid $6.50 each, bu

    		•
  • Q : What are the major legal forms of

    What are the major legal forms of business organization?

    		•
  • Q : Discuss the economic aspects of ticket

    Discuss the economic aspects of ticket scalping also identifying the gainers and losers?

    		•
  • Q : Describe advertising costs or

    Advertising costs or persuasive advertising: When the expenses incurred by a find to persuade the potential consumer to present their brands or products as different or better compared to another brands or products is termed as advertising costs or pe

    		•
  • Q : Least probability of competitive market

    The competitive market system is least probable to be allocatively unproductive as a result of: (w) externalities and public goods. (x) cutthroat competition and the outsourcing of low-wage jobs to less grown countries. (y) the underproduction of a go

    		•
  • Q : Describe financial leverage and low

    Describe briefly high financial leverage, low operating leverage?

    		•
  • Q : Nature and Scope of Economics Nature

    Nature and Scope of Economics: Introduction Economics is a social science that

    		•
  • Q : Perfect Competition leads to Allocative

    A perfectly competitive industry achieves allocative efficiency since: w) goods and services are produced at the lowest possible cost. x) services and goods are produced up to the point where the last unit gives a marginal benefit to consumers equivalent to the margin

    		•
  • Q : Define the terms Plant Define the

    Define the following terms?

    		•
  • Q : Forcast 9. The following table shows

    9. The following table shows annual sales data for Stuff Happens, Inc., over the ten-year 1998-2008 period: Year Sales ($ Millions) 1998 $2.0 1999 2.2 2000 2.4 2001 2.6 2002 2.8 2003 3.0 2004 3.2 2005 3.5 2006 3.8 2007 4.1 2008 4.3 A. Calculate the 1998-2008 growth rate in sales using

    		•