Should The Government Intervene In The Market?

NameInstitutionInstructorCourse codeShould Government Intervene In The MarketMarket is where the forces of involve and supply come over . In case of free trade , free rival is encouraged frugal agents are assumed to have pertinent information to launch decisions , buyers and sellers are many and no economic agents has power to influence food market price-determined through interaction of demand and supply , economic agents are also assumed to be rational and willing prove to have more than less(prenominal) . In such a market , the individuals will seek to further their own interests , and the collective decisions of all economic agents will determine the economic activities in the economy . Mostly , the market involves the interaction of the firms /business and households . The consumption serve well and production function of households and firms respectively meet in the market . Firms will emphasis on obtaining the highest profits possible .

Firms will continually sift to improve technology , service and price in to win from a stream of short-lived streams of supernormal profits (Swain 2000 p1 . On the other hand , consumers will seek to maximize their emolument given their income , taste and preferences , and market prices . The government role should notwithstanding be aimed at providing an environment that will enhance this processHowever , market conditions are not necessarily like stated to a higher place . It is likely to have a market with few or a single seller , few buyers or level a single buyer . Additionally , economic agents may not have the relevant information to enable them make informed decisions . Monopoly...If you want to get a full essay, high society it on our website: Ordercustompaper.com

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