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you can know when a price is too high by adding up the cost of each part of a good or service. if capital detects arbitrage then it enters the market. making th
by radicalace 3y ago
you can know when a price is too high by adding up the cost of each part of a good or service. if capital detects arbitrage then it enters the market. making this cycle of renewal as frictionless as possible makes markets healthier and prices lower. corruption and poorly designed regulation increase friction.
not just that. discerning and intelligent consumers are key to healthy markets as well.
- nradov 3y agoSo you can quote an Econ 101 textbook. Now how do things actually work in the real world?