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Most economists in the United States seem excited by the spell of the free market. Consequently, nothing seems good or normal that does not accord with the requirements of the free market. A price that is determined by the seller or, for that matter, established by anyone other than the aggregate of consumers seems harmful. Accordingly, it requires a major act of will to think of price-fixing (the determination of prices by the seller) as both "normal" and having a valuable economic function. In fact, price-fixing is normal in all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixing that it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competing for the same group of consumers. That each large firmwill act with consideration of its own needs and thus avoid selling its products fo
A. refute the theory that the free market plays a useful role in the development of industrialized societies.
B. argue that price-fixing, in one form or another, is an inevitable part of and benefit to the economy of any industrialized society.
C. show that in industrialized societies price-fixing and the operation of the free market are not only compatible but also mutually beneficial.
D. explain the various ways in which industrialized societies can fix prices in order to stabilize the free market.
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