What are the implications of the Marshall conflict for policymaking?

The implications of the Marshall conflict for policymaking are:An effective and reasonable balance between market competition and economies of scale to maximize production efficiency.

1. The Marshall Conflict:

Economist Marshall's view of the contradiction between economies of scale and the ills of monopoly in economic theory. Marshall believed that free competition will lead to the expansion of the scale of production, the formation of economies of scale, and the increase of the market share of products, but it will inevitably cause market monopoly, and the development of monopoly to a certain extent will inevitably prevent competition, stifle the vitality of enterprises, and cause irrational allocation of resources.

Therefore, society is faced with a dilemma:How to find an effective and reasonable balance between market competition and economies of scale to obtain maximum production efficiency. The "Marshall conflict" applies to industries with increasing returns (diminishing costs), such as telecommunications, banking.

II. Ways to Overcome the Marshall Conflict:

Economists have been relentlessly exploring how to overcome the "Marshall Conflict". In 1940, the British economist Clark proposed the concept of effective competition. In his view, the so-called effective competition is a kind of effective coordination between economies of scale and the vitality of market competition, so as to form a competitive pattern conducive to long-term equilibrium.

However, Clark did not discuss the objective conditions and measures for achieving effective competition.

On the basis of summarizing the research results of his predecessors, Chinese scholar Wang Junhao put forward three criteria for effective competition:

1. Effective competition is the competition in which the benefits of competition are greater than the costs of competition;

2. Effective competition is moderate competition, that is, competition between insufficient competition and excessive competition;

3. Effective competition meets the requirements of economies of scale, and the production scale of competing enterprises is within the range of moderate scale, that is, between the minimum economic scale and the maximum economic scale.

Effective competition is to take into account economies of scale and the vitality of market competition, effective competition is the combination of moderate scale and moderate competition, and effective competition is an effective way to overcome the "Marshall conflict."

The following statement about the Marshall conflict is incorrect ().

a.Free competition leads to an increase in the scale of production and the formation of economies of scale.

b.Free competition will increase the market share of products and create market monopoly.

c.There is no effective and reasonable equilibrium between market hosiery competition and economies of scale.

d.When monopoly develops to a certain extent, it will inevitably prevent competition, stifle the vitality of enterprises, and cause irrational allocation of resources.

Correct Answer: Posture High C

The following statement about the lack of clarity in the Marshall conflict is incorrect ().

a.There is no effective and reasonable equilibrium between market competition and economies of scale.

b.Free competition leads to an increase in the scale of production and the formation of economies of scale.

c.When monopoly development is carried out to a certain extent, it will inevitably prevent competition, stifle the vitality of enterprises, and cause irrational allocation of resources.

d.Free competition will increase the market share of products and create market monopoly.

Correct Answer: a

Answer]: The Marshall conflict "means that large-scale production can bring economies of scale to enterprises, making the unit cost of their products."

The result of the continuous decline and the continuous increase in the market share spine rate will inevitably lead to the continuous strengthening of the monopoly factor in the market structure, and the monopoly.

The formation of the competition mechanism will inevitably hinder the role played by the competition mechanism in the rational allocation of resources, make the economy lose its vitality, and thus stifle the split state.

by competition. In the face of this contradiction, Marshall tried to use the "generation-development-recession" process that exists in the development of any enterprise.

It shows that monopoly will not spread indefinitely, and that economies of scale and competition can achieve some equilibrium.