competitive markets Flashcards
1
Q
pros of competitive markets
A
-allocative, productive and x efficiency
-jobs
2
Q
cons of competitive markets
A
-lack of dynamic efficnecy and economies of scale
-cost cutting in dangerous areas: health and safety, environmental standards
-creative destruction: movement in, beating creatively but destroy incumbent firms
3
Q
evaluation of competitive markets
A
-still dynamic efficiency, just enough to reinvest
-level of EOS
-natural monopoly
-where is cost cutting taking place
-regulation role
-type of good/service
