ETHICS IN MARKET PLACE

VELASQUEZ CH 4

PERFECT COMPETITION

There are numerous buyers and sellers, none of whom has a substantial share of market All buyers and sellers can freely and immediately enter or leave the market Every buyer and seller has full and perfect knowledge of what every buyer and seller is doing The good being sold are so similar The cost and benefits of producing or using the goods being exchanged are borne entirely by those buying or selling the goods and not by any other external parties All buyers and sellers are utility maximizers No external parties regulate the prize, quantity ot quality of any goods

ETHICS AND PERFECTLY COMPETITIVE MARKET

Lead buyers and sellers to exchange their goods in a way that is just Maximize the utility of buyers and sellers by leading them to allocate, use, and distribute their goods with perfectly efficiency Bring about these achievements in a way that respects buyers and sellers right of free concent free to enter or leave, fully voluntary, no single buyer and seller will so dominate

MONOPOLY MARKET

ONE SELLER HIGH ENTRY BARRIERS QUANTITY BELOW EQUILIBRIUM PRICE ABOVE EQUILIBRIUM AND SUPPLY CURVE CAN EXTRACT MONOPOLY PROFIT

ETHICAL OF MONOPOLIES

VIOLATION OF JUSTICE ECONOMIC INEFFICIENCY LACK OF RESPECT FOR NEGATIVE RIGHT

OLIGOPOLISTIC COMPETITION
MARKET PRACTICES THAT IDENTIFIED AS UNETHICAL: Price fixing Manipulation of supply Exclusive dealing arrangement Tying arrangement Retail price maintenance agreement] Price discrimination