essay 2

essay 2 - Max Haubold Essay #2 3/25/2011 The Economics of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Max Haubold Essay #2 3/25/2011 The Economics of Worldwide Economy Through an economist's eyes, the most important goal of any market is efficiency. As an Economics student, I have analyzed countless models in which the effects of poor competition and barriers to entry hinder perfect market efficiency, detrimentally affecting the public good. To be efficient, a market must allow for perfect competition, wherein the producers that can supply a good most easily do so. Multiple producers must be in the market to keep prices low and encourage innovation. There must be low entry and exit costs of each producer, allowing the free entry and exit of producers to the market. In analyzing the three documents this week I have found evidence that these conditions, when satisfied in the twentieth century, did indeed lead to a more efficient market. The technology, change in diplomatic tactics, and worldwide cooperative trade policies contributed to the fluidity of the interdependent market, increasing efficiency and the greater public good. Public good can mean many things, but in our context public good is the overall benefit consumers gain from participating in a market. To an economist, this means having producers compete to drive costs down to where the consumers are actually willing to pay more for the goods than the market price. They benefit, because they save money and feel like they are 'getting a deal'. In the context of the mid 1900s, this would equate to more products being available to consumers, lower prices, and the ability for under developed countries to gain the most from their own resources. Efficiency within a market to enhance public good is reliant on technology. The article “Multinationals
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/18/2011 for the course MNGT 364 taught by Professor Staff during the Fall '08 term at UNC.

Page1 / 3

essay 2 - Max Haubold Essay #2 3/25/2011 The Economics of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online