Problems: Plan, Market, and Firm
Why did Friedrich von Hayek deserve his Nobel Prize?
Apple Computer and Toyota Motors do not allocate goods and services within their organizations with the market system--they use internal corporate central planning. If central planning is as poisonous to an economy as Professor DeLong has maintained, why are large successful corporations are large islands of command-and-control central planning within the market system that do well?
Describe how a market economy efficiently allocates scarce resources among alternative uses.
