Are markets the best way of solving the economic problem, Microeconomics

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Are markets the best way of solving the basic economic problem? Justify your answer.

The core of the economic problem ( who, what, for whom) is something all societies must address. Planned economies solve it by central price and output setting, while market economies solve it by the price mechanism. Both systems have their basic flaws.

Another issue is that of market failure, and how society addresses this

 


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