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Real economists study how competition creates waste. An common example of waste induced by competition is advertising expenditures. Competition doesn't alloca
by ClumsyPilot 4y ago
Real economists study how competition creates waste.
An common example of waste induced by competition is advertising expenditures.
Competition doesn't allocate resources, price discovery does that.
The whole advantage of markets over central planning is they work in non-ideal situations, where planning is not practical. You got the whole thing backwards.
- WalterBright 4y agoHow would you learn about new products that will improve your life without advertising? There isn't price discovery without advertising. The advantage of markets is central planning has proven to be incapable of dealing with the complexities of markets. Making things worse in central planning is the problem of putting an inept person in charge. In a market system, the inept business goes out of business.
- UncleEntity 4y ago> Competition doesn't allocate resources, price discovery does that. And price discovery is the result of people competing for scarce resources. *scarce in the sense that it isn’t free for everyone like air, there’s no price discovery before you turn on the air compressor in your garage to fill up your car tire.