Describe Two Market Mechanisms That May Serve to Enhance Efficiency

question 5

Essay

Describe two market mechanisms that may serve to enhance efficiency and limit the lazy monopolist problem. Can efficiency be achieved by incentives other than profit?

---

Definitions:

Partnership Business

A partnership business is a type of business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Partnership Capital

Refers to the total resources contributed by partners to a partnership for the purpose of starting or maintaining the business operations.

Joint Ventures

Business arrangements in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

Implied Authority

Power that is not explicitly granted but is assumed to be authorized due to the nature of an individual's position or relationship.