The Balance of Industries and Creative Destruction

Why are price signals and market competition so important to a market economy? When prices accurately signal costs and benefits and markets are competitive, the Invisible Hand ensures that costs are minimized and production is maximized. If these conditions aren’t met, market inefficiencies arise and the Invisible Hand cannot do its work. In this video, we show how two major processes, creative destruction and the elimination principle, work with the Invisible Hand to create a competitive marketplace that works for producers and consumers.
Microeconomics Course: bit.ly/20VablY
Next video: bit.ly/1Qf5B0q
Help us caption & translate this video!
amara.org/v/GSLI/

[@marcohinojosa1997]

Just want to say thank you. I refer to your videos while studying here at A&M and these help me a lot.

[@TheHumbleThinker]

Even for me - Russian speaker - that`s pretty simple to understand as you`re great at explaining. Its hard for me to get how much easier for a native English speaker to understand tour videos. Great work! Thank you! Keep on!

[@ramonvilaltacasas1153]

The point: "Prices do not accurately sign cost and benefits " Really important clue.

[@pnflex495]

mouais je fais mieux mais bon...