If the government wanted to reach point J it could simply mandate this allocation through centralized control

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If the government wanted to reach point J it could simply mandate this allocation through centralized control of resources why might it be better to set up competitive markets and allow trading?

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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Mar 18, 2016 04:54 AM

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If the government wanted to reach point J it could simply mandate this allocation through centralized control

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Point J is efficient Their indifference curves lie tangent to the same straight line ...View the full answer

Microeconomics

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