How does cost-efficient capital market help to reduce the prices of goods and services?
139247
efficient capital market allows more money to be invested, which means more goods and services produced, which means lower prices. \n\nyou get more investment b/c efficient market has zero gap between the rate that users of capital pay, and the rate that owners of capital receive. In real world, this gap is non-zero, so less capital is supplied to the market; and less capital is demanded.
293921
The simple answer is to control the money supply. Cutting rates encourages investment and stimulates the economy. Raisng rates does the opposite.
295272
the less is the joint market power of oligopolists, the stronger is competition btw them, the better for consumers. the best variant is bertrand or price competition which gives efficient outcome.
502989
Good question if worded correctly. Industry's value works twofold.  First, technology reduces unit cost which allows for a lower market price resulting in increased demand.  Second, the value added by the worker results in higher wages.  The money multiplier in a free market economy has to be higher than command economies (because of efficiency) so wealth creation is enhanced greatly.  \n\nBut that doesn't explain everything going on.  Industry tends to bureaucracy because of the size of operation.   Economies of scale also end up in diseconomies of scale.  Demand changes which can have negative long term impact.  (Domestic car producers today)  Too much labor of the labor market in industry results in boom bust cycles that result in large economic swings.   (Recently, the US has seen good growth without corresponding serious downturns.  Is it higher percentage of labor market in service sector, Fed policy, low tax rates, budget deficits?\n\nUltimately, free markets determine the real answer to your question.  But, increased efficiencies and outsourcing industry sector jobs have not harmed the economy here if you measure that by the aggregate and macro numbers.
809485
Idustrialization reduces scarcity and increases surplus because more goods can be produced in a short period of time.
620914
Trying to slow inflation & growth.
925465
I don't think arbitrage exists in a truly efficient market. It's one of the mechanisms outside the market that makes them efficient. \n\nPerhaps you phrased it incorrectly and mean something else?
754170
Basicly the reason is that free market mechanism optimize short term profits. Examples abound: \n- why investing in pollution control *now*, although cleaning up in 20 years might cost much more?\n- why investing in fundamental research *now*, although it might give us a killer app in 10 years? \n- why not move our production factories to India and China *now*, although our workless population at home may no longer be able to buy our products in five years?
217952
The move to decimilization was done to decrease friction in the markets.  Since options are used by a smaller number of traders, using a stepped-pricing system causes seller and buyers of options contracts to be condensed into price-based pools.
1148783
It is all about supply and demand. The demand is there and the supply gets cut back so the price increases.
501022
Effective management will increase sales and decrease costs resulting in greater profits for the business.
69809
A market for the exchange of capital and credit, including the money markets and the capital markets.
1083991
actually, the efficient market hypothesis is claiming that prices of securities fully reflect available information about securities.  And it further states 3 forms of EMH. \n\n1) strong form -stock prices reflect all information relevant to the firm, even including information available only to company insiders.\n\n2) Semistrong form - stock prices already reflect all publicly available information. This information includes in addition to past prices, fundamental data on the firm's product line, quality of management, balance sheet composition, etc. \n\n3) Weak form - this form states that stock prices already reflect all information that can be derived by examining market trading data such as the history of past prices, trading volume, or short interest.  It implies that trend analysis is fruitless.  If such data ever conveyed reliable signals about future performance, all investors would have learned long since to exploit the signals.  Ultimately, the signals lose their value as they become widely known. \n\nWhile random walk theory is the notion that stock price changes are random and unpredictable.  Randomly evolving stock prices are the necessary consequence of intelligent investors competing to discover relevant information before the rest of the market becomes aware of it.
351806
It's somewhat complex and there's a couple of different ways you can do it...this will get you started:\n\nhttp://en.wikipedia.org/wiki/Cost_of_capital
384280
when government subsudizes a certain sector, that reduces the cost of production of the good. that leads to increase in world supply and price eventually falls, assuming demand does not change.
441985
Collusion works if there is a fair amount of business where they are located. They have to have the same products, and there has to be an open market for it. It is good for sellers, because it allows them to equally split profits amongst themselves and to keep prices high because of the lack of free markets.
585332
In a multi-firm oligopoly (one of the few situations where it would matter), yes, this is the case.  Then the firms can both charge the higher price and make more profit as the expense of the consumer.