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What are the benefits and drawback for a country that is relying more on the market system?
Benefits:
- Allocative and productive efficiency: Since free market operates on demand and supply, at any time, there will be a productive efficiency (where average cost is minimum) and allocative efficiency (where society welfare is maximum.)
- Doesn't need to manage: Since price acts as a signal (to change production and consumption level) and an incentive (to produce), there is no need to manage and research each of those demand - which often leads to misinformation (as happened with planned economy.
Drawbacks
- Market failures: Free market creates room for market failures include demerit goods/ merit goods/ public goods/ monopoly/ externalities.... which can harm the society as a whole.
What else can I help you with?
What is the outline of the benefits of free market economies to owners of firms?
what does the free market economies benefits to owners
When a country currency depreciates who benefits the the most?
businesses that sell their goods in the domestic market will benefit as they now experience less price competition from importers because prices of imported goods and services are likely to rise on the domestic market.
What is the globalization of market?
The benefits derived while doing trade worldwidely.
Describe two benefits you enjoy because of the free-market system?
One of the benefits of a free market system is that you can shop for the best deal since pricing is not set. Another benefit is that anyone can enter the market.
Which of the following describes a drawback of a command economy compared to a free market economy?
Answer this question… It reduces innovation by requiring all businesses to follow government orders.
What is the role of PMV in drawback?
Present Market Value
Who benifits from mutual funds?
Everyone benefits from mutual funds. Investors gain from these funds because they stand to reap the benefits of investing in the stock market. The stock market benefits because there are more people investing in the stock market. The economy benefits because there is more money in circulation which is good for the overall economy of the country.
What are the drawbacks of having a closed end fund?
The major drawback of a closed-ended fund is that if the market tanks, demand for the shares can evaporate overnight, leaving you holding a worthless investment. While a closed end fund has many benefits, there are also some drawbacks. The main drawback is that you can not use the initial capital to continue dividend payments.
What benefits do financial market offer?
What benefits do financial market offer
Why has relying on one crop or resource presented an economic problem for many Latin American nations How have these nations been trying to solve this problem?
Relying on one crop or resource is a problem for anycountry. When the crop fails or the market for the crop or resource declines, the country has nothing else to fall back on for support. The only solution to this problem is the diversify the agriculture or general economy of the country involved.
What is the outline of the benefits of free market economies to owners of firms?
what does the free market economies benefits to owners
Define Internal market research?
Conducting internal market research involves relying on every person on staff to market goods or services, then drawing conclusions on the effectiveness of such a business strategy.
When a country currency depreciates who benefits the the most?
businesses that sell their goods in the domestic market will benefit as they now experience less price competition from importers because prices of imported goods and services are likely to rise on the domestic market.
What is the globalization of market?
The benefits derived while doing trade worldwidely.
What benefits to American businesses does the global economy confer?
In such a market, companies may source from the United States, conduct research and development in another country, take orders in a third country, and sell wherever there exists demand
How much money did Friends with Benefits gross domestically?
Friends with Benefits grossed $55,802,754 in the domestic market.
Describe two benefits you enjoy because of the free-market system?
One of the benefits of a free market system is that you can shop for the best deal since pricing is not set. Another benefit is that anyone can enter the market.
