ECON 219 Lecture Notes - Lecture 12: Perfect Competition, Bargaining Power, Financial Market

• School: McGill University
• Department: Economics
• Course: ECON 219
• Professor: Tom Velk

Document Summary

When all prices are eicient no more producer unrealized seller/buyer games, highest level of uility. Allocate resources job of moving investment money into the highest possible investment use. Funcionary acivity insituion that uncovers real prices desire to hide and line cut through. Several small stories about ideas for insituions for pracices to improve allocaion to reveal real prices. Put in the box deals can be made, only a gap btw buyer and seller. If buyer has all the power move straight down as buyer pays less and less. Seller moving to the right has the power to get more and more. Broker buying the gap and giving it back to original seller. Great many sellers cant charge more than the resources needed to make them no resources are wasted. Cost of producion buyer pays just as much as it would cost to produce ex basketball. Buys fewer things doesn"t want him to drive down the buying.