By Sigrun WinklerOn Feb 27, 2019 Free Resume
Governments play a vital role in market formation for products by imposing regulation and price controls. They can control entry and exit of firms into a market by setting up rules to function in the market. For example, the pharmaceutical industry has to contend with a roster of rules pertaining to research, production, and sale of drugs.
The development of new markets in the technology industry also resembles perfect competition to a certain degree. For example, there was a proliferation of sites offering similar services during the early days of social media networks.
The relationship between demand and supply underlie the forces behind the allocation of resources. In market economy theories, demand and supply theory will allocate resources in the most efficient way possible. How? Let us take a closer look at the law of demand and the law of supply.
95 out of 100 based on 050 user ratings
22 Facebook Shares
12 Twitter tweet
29 Pinterest Pins
13 Google+ Shares
12 Thumblr Shares
5 Linkdkn Shares
© 2011 - 2019 Reachforyou.org. All rights reserved.