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What are the benefits of leaving the allocation of country resources to the price mechanism?
Ans) The main conditions needed are:
1. Either a finite number of agents or goods.
2. No externalities - That is, the consumption of one person should not harm or advantage anyone else.
3. No matter how much a one is consuming, they must be capable to be made slightly happier by consuming a bit more of something.
A human resources department must know if the wage rate is stable, will increase or decrease. If equilibrium exists, wages are stable, if excess demand exists; wages will increase
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the negavtive effect intermediaries has on a business organisation
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