Thursday, July 30, 2009

Lest We Forget

As economics teachers, this opinion piece from today's edition of The Washington Post says a lot and says it clearly.

I'd be interested in your reactions.

1 comment:

Julie said...

"In a true competitive market, one without barriers to entry or market power, companies should not earn any profits at all, because competition will drive price down to marginal cost. (Steve Goldman, one of my economics professors, once said that if you wake an economist up in the middle of the night and ask him or her, “what is price?,” he should answer, “marginal cost.”)
From Baseline Scenario blog: