Why Is a Competitive Market Efficient

question 348

Essay

Why is a competitive market efficient?

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Definitions:

Tabula Rasa

A theory suggesting that individuals are born without built-in mental content, and all knowledge comes from experience or perception.

Innate

Something that is present from birth, not learned or acquired through experience.

Distal Stimulus

The actual object or event out in the world that you perceive, existing independently of your perception of it.

Chemical

A chemical is any basic substance that is used or produced in any chemical process, characterized by having a specific set of properties and composition.