Managerial Economics For Dummies

Chapter 18

Rules, Rules Everywhere: Government and Managerial Decision-Making

In This Chapter

Including externalities

Getting something for nothing as a free rider

Using government to provide goods

Eliminating monopoly efficiency

Regulating or preventing collusion

Providing information equality

Restricting foreign competition

The United States relies primarily upon a system of markets and prices for resource and commodity allocation. But remember, markets are a means, not an end. Ultimately, the goal is to produce as much stuff as possible with those resources. In some instances, markets don’t work very well at producing and allocating stuff. In these instances, government can step in to improve the situation. The purpose of government intervention isn’t to preserve competition, but ...