You simply misunderstand and don't get it. Please reread (or read) the simple explanation I gave about the barber and why raising prices could lead to less profits. And think about it.
Yes for the free market to work at maximum efficiency competition is required. Thus the existence of anti-trust laws. As for collusion and cartels, again, there are laws on the books but there are also economic forces that work against collusion and cartels. I am not a free market fundamentalist. I know maximum efficiency doesn't always produce favorable social outcomes. Thus the need for laws and regulations to smooth out the rough edges of capitalism.
I've read Adam Smith extensively, and I am certain I understand him much better than you. Nothing personal.
Current Events » in reply to You start off your post with a contradiction. The first two sentences.
No contradiction whatsoever
The whole thread (33 posts)
- Whatever the market will bear
- Interesting, considering public demand for it is dropping...
- Price equilibrium.
- You're ignoring elasticity of demand. n/t
- De Beers
- You start off your post with a contradiction. The first two sentences.
- Price equilibrium.
- Interesting, considering public demand for it is dropping...