Question
Evaluate these statements concerning competition and welfare, using economic reasoning [12 marks] a)Perfect Competition is bad for growth. It does not deliver economic welfare gains
Evaluate these statements concerning competition and welfare, using economic reasoning [12 marks]
a)"Perfect Competition is bad for growth. It does not deliver economic welfare gains in the long run." [6 marks]
b)"Patents are a source of market failure. This is particularly true in the pharmaceutical industry, where firms enjoy huge profit margins by keeping prices high and outputs low. More competition in these markets would deliver huge welfare gains."
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The Economics of Public Issues
Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
19th edition
134018974, 134018973, 9780134020532 , 978-0134018973
