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Homework answers / question archive / If firms face accurate market signals or incentives, markets will lead to efficiency
If firms face accurate market signals or incentives, markets will lead to efficiency." Use this idea to examine any two of the following four markets that would likely NOT lead to an efficient allocation of resources. Explain whether you think the market might not lead to the (1) "right" level of output, (2) produced by the "right" producers, and/or (3) consumed by the "right" consumers.
a) the market for hogs where a lot of pollution is created
b). The market for education
c). The market for guns
d). The market for Ebola vaccines.
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