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  • How Does the Australian Government Fight Against Inefficiencies in the Economy?

     

    Eseja2 Ekonomika

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Identifikators:651104
 
Vērtējums:
Publicēts: 19.10.2003.
Valoda: Angļu
Līmenis: Vidusskolas
Literatūras saraksts: Nav
Atsauces: Nav
Darba fragmentsAizvērt

A key factor in determining market performance is how efficiently a firm uses available resources. This efficiency will determine if a firm can survive in a particular market where competition exists. In an ideal situation, perfect competition occurs when new firms are allowed to join a market and have equal access and acquisition cost of resources. Therefore with competition in place, firms will be forced to be more efficient in its production of goods/services.
Efficiency not only leads to less wastage of resources, but consumers can benefit from the possible fall in prices. Unfortunately, in any market, there are factors that might prohibit or lessen the level of competition within a market preventing the benefits discussed. This is where the significant importance of microeconomic reform (MER), which consists of government policies designed to increase the level of efficiency, is evident. Deregulation, trade liberalization and the forming of regulatory authorities such as the Australian Competition and Consumer Commission (ACCC) are examples of such policies.
Microeconomic reform is needed if market efficiency and its benefits are to be achieved. There are three classifications of efficiency.…

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