Share
Explore BrainMass

Problems with invisible hand

9. Describe the sanctions that have been enacted by US laws to protect citizens from pricing actions that are not held in check by the Invisible hand?

10. How do the principles of microeconomics that you have leaned in this course apply to other nations?

Solution Preview

9. Perhaps the most important laws enacted by the US government to protect citizens from pricing actions that are not held in check by the invisible hand are anti-trust regulations. These laws were made to prevent companies from engaging in anti-competition practices. The invisible hand implied that competition would allocate resources efficiently, but there are some instances in which a company, or a small group of companies, can become monopolies or oligopolies, respectively. In those circumstances the competitive factor necessary for an invisible hand to ...

Solution Summary

9. Describe the sanctions that have been enacted by US laws to protect citizens from pricing actions that are not held in check by the Invisible hand?

10. How do the principles of microeconomics that you have leaned in this course apply to other nations?

$2.19