In 18th century Europe, governments gave guilds legal authority to limit production of goods. Did this authority obstruct or improve the market mechanism and how?

Question

Quizplus · Accepted Answer

Giving guilds legal authority to limit production obstructed the market mechanism because it prevented the forces of demand and supply from coordinating the self-interested decisions of producers and consumers. The guild's actions created barriers to entry for new producers and constrained competition, which could lead to higher prices and lower quality for consumers. Additionally, the guilds were often dominated by established members who could use their power to maintain their position and restrict innovation.

In 18th Century Europe, Governments Gave Guilds Legal Authority to Limit