12. Market prices coordinate the actions of buyers and sellers, bringing their decisions into line with one

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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.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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