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Lubov Fominskaja [6]
3 years ago
6

Third Parties In General (not Just With Health Care) Are Inefficient Because

Business
1 answer:
goldenfox [79]3 years ago
3 0

Answer:

Third Parties In General (not Just With Health Care) Are Inefficient Because

b) it means a large bureaucracy.

Explanation:

Ordinarily, in an efficient market, there are no third parties.  The market participants remain buyers and sellers.  They are aided in their business dealings and for the determination of prices during the exchange by the invisible hand.  It is the invisible hand that ensures the existence of market equilibrium between demand and supply.  If this invisible hand is removed and a third party comes in to regulate the market and the activities of the market participants, usually the government, it implies that bureaucracy will increase.  It has been established that decisions made by the state are not always efficient because more costs are added to the decision-making process.

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