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Market Failure and the Role of Government

  • Jack Harvey
Chapter

Abstract

Economic efficiency is achieved when society has attained maximum satisfaction from the allocation of its limited resources.Given certain conditions, the market can achieve simultaneous exchange, technical and economic efficiency. Exchange efficiency: no overall increase in satisfaction can be achieved by an exchange of goods since preferences are related to market price. A single market price will rule for each good until each consumer is in equilibrium.

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Copyright information

© Jack Harvey 1994

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  • Jack Harvey

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