B T
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How long does it take for shocks to propagate through the price system / market?
2 votes

This is likely only part of the story, but I found an interesting lecture by Milton Friedman that shows a graph of the quantity of money per unit of output (likely GDP) graphed alongside a normalized ...

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How can the abuses of monopoly power lead to market failure?
1 votes

A market failure is when some economic structure prevents the market from achieving optimal efficiency. A critical part of how the market tends toward its optimal efficiency is via competition. If ...

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Does the government have a role to play in certifying people's abilities for the labor market?
1 votes

The appropriate role of government is to improve on free activity of the market by improving how the market works (ie fixing market failures). For skill certifications to be an appropriate role for ...

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What are examples of natural monopolies that don't have overwhelming economies of scale?
1 votes

One answer I found are natural monopolies that form on the basis of significant network effects. While economies of scale decrease the cost per unit as you can produce more units, network effects ...

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Is market failure constant? What properly defines it?
0 votes

Your economic text book sounds poorly written. To be fair, it sounds like most econ textbooks are. The quote you wrote is a terrible circular definition of externality. Certainly not all activities ...

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What is the purpose of the local non-satiation assumption in the first welfare theorem?
0 votes

Ok I think I might understand now why local nonsatiation is important for tending toward a pareto optimal market allocation. Consider the following picture, where all the circles represent possible ...

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How does the monopoly's deadweight loss affect market surplus and the economic pie?
0 votes

What that source is saying is that there are two attributes of the single-price monopoly: the higher price payed by consumers that make trades with the monopoly, and the dead-weight loss resulting ...

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Why don't consumers subsidize monopolies?
0 votes

The people at large view monopolies as unfair market actors, and the idea of subsidizing such unfairness is the reason that real people in the current world don't want to subsidize monopolies. If you'...

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Correlation between salary level and housing prices in a town
-1 votes

"is it politically meaningful to drive up salaries by new investments if the result is unaffordable housing?" This is a very different thing from "is there a correlation", and I think what you're ...

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