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SVETLANKA909090 [29]
3 years ago
7

Why is the economic efficiency of market economies important?

History
2 answers:
Marat540 [252]3 years ago
7 0

Market-based economies have come to be the dominant system for the production and distribution  of goods and services. The power of markets stems from their decentralized nature. One of the advantages of economies of scale is the possibility of forming reliable and efficient distribution networks. The forces of self-interest, competition, and the balancing of supply and demand all exert stabilizing influences on prices in the market. They suggest the concept of an efficient market, defined follows: An efficient market is one in which prices always fully reflect available information, a market’s ability to communicate economic information via trade.

Agata [3.3K]3 years ago
4 0
It is needed to keep balance in a nation's economy, and between the economies of multiple countries. I should be able to purchase stock, and make a good return.
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