00:01
So what is a mixed economy? it's an economy with both private and public direction of production.
00:14
So in some areas, private firms make the decision about what to produce, how many workers to hire, what wages to pay.
00:22
And in other areas of the economy, the government or other public institutions make decisions about how much to produce, how many workers to hire, what wages to pay.
00:30
Etc etc so we've got a whole bunch of options about what is legitimate and legitimate is a tough question but we'll get back to that first one is regulation of monopoly be regulation of prices from demand supply changes the c is um let's see is um let's let's say stabilization policy, right, to trying to fight business cycles and recessions.
01:09
And ed is just, i mean, it's a little bit redistribution, right? so this is pretty straightforward.
01:20
The first one that is valid is regulation of monopoly.
01:24
There's a market failure, right? market failures happen when there isn't competition.
01:29
The monopoly will artificially reduce quantity to jack up profit.
01:36
So there's a very good reason for the government to step in.
01:39
The other one i would say is against stabilization policy and valid, again, because we usually think of a market failure, right? the market failure is here in the market for goods...