Are Performing Rights Efficiently Priced?
Economists are trained to examine markets to see whether the correct quantity of output is being produced. If the output isn’t just right, there will result a loss and inefficiency which economists melodiously refer to as a ‘deadweight loss’. To others, this focus on quantity produced may seem little more than a compulsively anal obsession, but in reality if the economy is going to function at a high level and not waste resources, it is of great importance that markets produce the correct output. Again, non-economists might think that problems might arise only if too little is produced, but economics clearly demonstrates that producing too much of a product is just as bad as producing too little (since the resources used to produce the surplus product are not put to their best use). Price normally is an important determinant of the quantity sold. The law of demand states that as prices increase, the quantity that is sold will fall. It is this linkage between price (which is under the c
