July 2014
Beginner
384 pages
8h 39m
English
CHAPTER5
Public Policy and Microeconomics
In This Chapter
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Adam Smith showed us how firms, markets, and industries are efficient and can regulate themselves. He reasoned that competition gives market participants the incentive to produce the optimal quantity at a price that consumers are willing to pay. The producer benefits by realizing a profit, and the consumer benefits by getting a good price for a product he or she wants to buy.
There are instances when the markets do not operate efficiently, or it is ...