Urgent Help - Microeconomic Reform!!! (1 Viewer)

[lil_huyenie]

Heys,
im going through the syllabus and i don;t know the answer to

"effects of microeconomic policy on individual product and factor market and the economy"

i get how microeconomic affects the factor market and economy, but i am still confused as to how micro policy affects PRODUCT MARKET.. !!!

COULD SOMEONE HELP ME PLEASE !!
thanks in advance

 

[zedzed]

micro reform is industry specific. it targets resource or product markets through increasing competition in specific industries and thus aggregate supply. this is achieved through increasing EFFICIENCY. you should know the 3 types of efficiency (dynamic, allocative and technical) and it's obvious how each of these affect product markets. if that's not clear just ask and i'll explain it.

 

[lil_huyenie]

yups,
i get it.

THANKS VERY MUCH!!!!

 

[Sparcod]

It improves resource allocation and hence due to allocative efficiency.......