microe-07幻灯片.pptVIP

* Is the market’s allocation of resources desirable? This question is important, because the answer to it has implications for the proper role and scope of government. If the market’s allocation is generally desirable, then the role of government should be limited to the protection of property rights, national defense and so forth. If not, then public policy may potentially be able to improve upon the market’s allocation. * * It’s worth mentioning the following: Most people know that monopoly changes the way the economic “pie” is divided: by charging higher prices, the monopoly gets m