In well-working markets, any gains from coordination are reflected in the level of product variety.

Question

Quizplus · Accepted Answer

In well-functioning markets, coordination among firms and efficient market mechanisms ensure that consumer preferences are met, which is reflected in the level of product variety available. This variety is a result of firms responding to diverse consumer demands and seeking to differentiate their products to capture market share.

In Well-Working Markets, Any Gains from Coordination Are Reflected in the Level