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| Topic: |
History
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| Number of pages / Number of words: |
14 / 3798 |
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This is called the “invisible handâ€. This was stated by Adam Smith. This system also depends on a stable money system, which is the trust in bank to manage this process makes economic activity possible.
In the market system, the price determination is not beyond the influence of firms. The level in which the control of the firm has over the price of the product being produced depends n the structure of the market to which it is operating in...
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The level in which the control of the firm has over the price of the product being produced depends n the structure of the market to which it is operating in. In an economy there are three different types of structures. They are; perfect competition, monopolistic competition, monopoly and oligopoly.
In the perfect competition market structure the allocation of resources is considered to be done ideally...
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