2006-09-19 14:20:24 · 3 answers · asked by bigeyedfish5684 1 in Social Science ➔ Economics
If the competition is pure and perfect, in most cases, market exchange allows to reach a Pareto-optimal situation, which means you can't improve an agent's situation without degrading another one's, "automatically", without an external intervention.
Note that a Pareto-optimal situation is economically efficient, but not necessarily fair.
2006-09-20 04:48:39 · answer #1 · answered by boulash 4 · 0⤊ 0⤋
1) It will lead to a more efficient allocation of resources. Since the incentive to producers of production is the price, if a good is not desired it will not be produced.
2) The market system provides a wider range of goods and services for the consumer.
3) Decentralized planning allows for more flexible adjustments to economic changes
2006-09-20 09:12:59 · answer #2 · answered by Nick 2 · 0⤊ 0⤋
1) you have a wider range of goods you can purchase thereby providing a better fit
2) you get a standard, established price for your goods alloowing you to better plan your allocation of resources
2006-09-19 14:31:44 · answer #3 · answered by waplambadoobatawhopbamboo 5 · 0⤊ 1⤋