<P> The competitive process in a market economy exerts a sort of pressure that tends to move resources to where they are most needed , and to where they can be used most efficiently for the economy as a whole . For the competitive process to work however , it is `` important that prices accurately signal costs and benefits . '' Where externalities occur , or monopolistic or oligopolistic conditions persist , or for the provision of certain goods such as public goods , the pressure of the competitive process is reduced . </P>
<P> The competitive process in a market economy exerts a sort of pressure that tends to move resources to where they are most needed , and to where they can be used most efficiently for the economy as a whole . For the competitive process to work however , it is `` important that prices accurately signal costs and benefits . '' Where externalities occur , or monopolistic or oligopolistic conditions persist , or for the provision of certain goods such as public goods , the pressure of the competitive process is reduced . </P>
what happens to a resource when competition for it increases
what happens to a resource when competition for it increases
tends to move resources to where they are most needed , and to where they can be used most efficiently for the economy as a whole
tends to move resources to where they are most needed , and to where they can be used most efficiently for the economy as a whole