In a perfectly competitive market, it leads to optimal allocation of resources - i.e. capital and human labour is used a way that is most beneficial to consumers.
The less competitive the market is, the less this is true But profit maximization = good should be the baseline.
I'm really confused that sometimes HN is full of libertarian comments but sometimes it suddenly turns to populist left. Mainstream economics is underrepresented on the internet despite it being most correct (imho obviously).
The less competitive the market is, the less this is true But profit maximization = good should be the baseline.
I'm really confused that sometimes HN is full of libertarian comments but sometimes it suddenly turns to populist left. Mainstream economics is underrepresented on the internet despite it being most correct (imho obviously).