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Seinfeld Economics: The Parking Garage (George's father)
by Linda Ghent `

Cost-benefit analysis involves, whether explicitly or implicitly, weighing the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option. Rational agents are assumed to never take an action for which the expected benefits are less than the expected costs.

Competition is the allocation of productive resources to their most highly valued uses and encouraging efficiency. Microeconomics theory distinguishes between perfect competition and imperfect competition, concluding that no system of resource allocation is more efficient than perfect competition. Competition, according to economic theory, causes commercial firms to develop new products, services and technologies, which would give consumers greater selection and better products. The greater selection typically causes lower prices for the products, compared to what the price would be if there was no competition (monopoly) or little competition (oligopoly).



This Commentary is related to the following Clips:
Seinfeld: The Parking Garage (George's father) by Larry David & Jerry Seinfeld (1991) George tells a story about how when his father bought a car, he went on a multi-state excursion to find the best deal.