The private market is a common economic mechanism for allocating scarce economic resources in an efficient manner. Imagine a situation where all decisions (when, where, how much, and at what price) relating to producing and consuming every good or service in the society are made by government or a group of individuals. Under such a system, one can expect much wastage, time delay, and lack of coordination among decision entities, which would hamper the smooth and efficient delivery of goods and services. In an ideal world, perfectly competitive private markets are means to achieving the most efficient way of making goods and services available to people, of exactly the quantities they need, at prices they can afford, and ...
Externalities and Property Rights
Externalities and property rights