Question

Are free, perfectly competitive markets compatible with social goals like equality and equity? Discuss with reference to the education and healthcare markets.

Answer 1

Free and competitive market has higher output and lower price, as compared to different type of market competition. Further, companies unit of measurement value takers. So, this is often often the market that helps people and promote efficiency. But, its role is restricted to help come back through the goal of equality and equity as merchandise unit of measurement homogenized in nature and people demand differentiation. With respect to education, the elemental education could also be of identical level, delivered to people at a value set by individuals at par nearly as good competition, but with specialization in education or education, there's a necessity of differentiation and ideal competition doesn't add these segments of the education. On an identical note, preventive health care could also be homogenized and people can avail it as a neighborhood of promotion of equality and equity, but specialised treatment founded varies with each consumer and patient. So, sensible competition doesn't work with specialised treatment plans and it attracts worth.

Hence, sensible competition has restricted scope to plug social goals as mentioned.