12. Market prices coordinate the actions of buyers and sellers, bringing their decisions into line with one
Question:
12. Market prices coordinate the actions of buyers and sellers, bringing their decisions into line with one another. However, long-run equilibrium will often be absent, since dissemination of information about profitable opportunities is generally incomplete and dynamic change is always present. As a result, at any time numerous unrealized profitable opportunities will be present. As entrepreneurs identify and carry out these profitable opportunities, the value of resources will increase. Simultaneously, the entrepreneurial activity will move markets toward full equilibrium.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Economics Private And Public Choice
ISBN: 9780123110404
2nd Edition
Authors: James D Gwartney; Richard Stroup; A H Studenmund
Question Posted: