A competitive price system equitably and even-handedly distributes income to compensate for the minor inefficiencies it must entail.

Question

Quizplus · Accepted Answer

A competitive price system does not necessarily ensure equitable distribution of income. Some individuals or groups may gain more income than others due to differences in skills, resources, and other factors. In addition, a competitive price system may result in income inequalities if certain markets are dominated by a few large firms, limiting competition and allowing them to set high prices and receive high profits.

A Competitive Price System Equitably and Even-Handedly Distributes Income to Compensate