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Managerial Economics and Strategy, 2/e
book

Managerial Economics and Strategy, 2/e

by Jeffrey M. Perloff, James A. Brander
February 2016
Beginner to intermediate content levelBeginner to intermediate
500 pages
33h 40m
English
Pearson
Content preview from Managerial Economics and Strategy, 2/e

8.4 Competition Maximizes Economic Well-Being

We have two main reasons to study competition in a managerial economics course. First, many sectors of the economy are highly competitive, including agriculture, parts of the construction industry, many labor markets, and much retail and wholesale trade. Second, and perhaps more important, perfect competition serves as an ideal or benchmark for other industries. This benchmark is widely used by economists and widely misused by politicians.

Most U.S. politicians have at one point or another in their careers stated (with a hand over their heart), “I believe in the free market.” While we’re not about to bash free markets, we find this statement to be, at best, mysterious. What do the politicians mean ...

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Publisher Resources

ISBN: 9780134472553