1. Choose 1 of the 4 functions of management (planning, organizing, leading, controlling) and describe how the fallacies of the free market impact managerial decision making. The first step in the question is to understand the assumptions of free and competitive markets – perfect competition. Then ask yourself are markets really free and competitive – do we engage in economic activities that are free and competitive? In perfect competition the invisible hand of the marketplace guides decision making. If there is no perfect competition how does the functions of management replace perfect competition?
2. How do weak property right influence managerial planning?
