MARK 4500 Lecture Notes - Lecture 8: Academy Awards
8 Mar 2018
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When a market allocates a scarce resource, the people who get the resource are those who are willing to pay the market price. Most of the scarce resources that you supply get allocated by market price: ex: athletes and scholarships schools who want to pay the market price of scholarships will get the athletes skills (scarce resource) You sell your labor services in a market, and you buy most of what you consume in markets. For most goods and services, the market does a pretty good job: until there is a sociopath like martin shkreli who increased the prices of necessary drugs. E(cid:454): moor(cid:373)a(cid:374)"s (cid:373)arket pri(cid:272)e to offer stude(cid:374)ts a"s. Command system allocates resources by the order (command) of someone in authority. For example, if you have a job, someone likely tells you what to do (your labor time is allocated to specific tasks by command)
