why do markets need both adequate competition and adequate information

why do markets need both adequate competition and adequate information插图

Marketsrequiresbothadequatecompetitionand adequateinformationbecause in it’s absence organisation could easily spend its profits on huge salaries and bonuses, executive jets, and generous retirement plans.

What is a market?

market a group of buyers and sellers of a particular good or service competitive market a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker quantity demanded the amount of a good that buyers are willing and able to purchase

What is meant by a market with many buyers?

a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker quantity demanded the amount of a good that buyers are willing and able to purchase

What is the role of the market for factors of production?

In the market for factors of production, households sell the use of factors of production, such as labor, land, and capital, to firms. The households then use the income generated from doing this to purchase output from firms in the markets for goods and services, generating a flow of revenue from households to firms.

Why do businesses use the money market?

why do businesses use the money market? businesses both invest and borrow in the money markets. they borrow to meet short-term cash flow needs, often by issuing commercial paper. they invest in all types of money market securities as an alternative to holding idle cash balances

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