CHE249H1 Lecture Notes - Lecture 7: Bulletproof Glass, Lebron James, Berlin Wall
1 Mar 2016
School
Course
Professor
Document Summary
Coca cola example at berlin wall, handing it out to increase brand recognition. The market economy is a powerful force for making our lives better. At the same time, the market is amoral. Our system uses prices to allocate scarce resources. Because we use price to allocate goods, most markets are self-correcting. If we fix prices in a market system, private firms will find some other way to compete e. g. early airplane travel price-fixing, so quality used to distinguish, gas prices in south africa fixed, so gas attendants in bow ties. Every market transaction makes all parties better of. Mergers and acquisitions, as well as ceo pay (options) Government with laws, rules, courts, subsidies, to make up for market economy"s deficits. Externalities cases when individuals or firms engage in private behavior that has broader social consequences. Not everyone who is affected by market transaction may have a voice on it.
