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- Cost of Living
- Posted 1 month ago
Why are cities so expensive?
The cost of living crisis is continuing to make headlines around the world, with rents rising and many being priced out of areas they’d like to live in. The cost of everyday items like groceries, gas, and utility bills add to the sense that living in a major city is becoming increasingly burdensome.While this article certainly can’t solve the cost of living crisis, it can provide an answer to that question of why cities are so expensive. Let’s dive in.
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- Blog Post
- Posted 2 months ago
Does Competition Always Lower Prices?
Competition is one of the foundational concepts in economics. We’re taught in intro courses that competition lowers prices, because it allows markets to allocate resources efficiently. This is an example of Adam Smith’s “invisible hand” in action, a cornerstone of economic theory.But does competition always lower prices? The answer is, yes, sort of — it just depends on the degree of competition.Since that answer probably doesn’t satisfy anybody, let’s dig deeper.
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