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Most economists in the United States seem captivated by 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 pernicious, 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 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 firm will act with consideration of its own needs and thus avoid selling its products for more than its competitors charge is commonly recognized by advocates of free-markets economic theories. But each large firm will also act with full consideration of the needs that it has in common with the other large firms competing for the same customers. Each large firm will thus avoid significant price cutting, because price cutting would be prejudicial to the common interest in a stable demand for products. Most economists do not see price-fixing when it occurs because they expect it to be brought about by a number of explicit agreements among large firms; it is not.More over those economists who argue that allowing the free market to operate without interference is the most efficient method of establishing prices have not considered the economies of non socialist countries other than the United States. These economies employ intentional price-fixing usually in an overt fashion.Formal price fixing by cartel and informal price fixing by agreements covering the members of an industry are common place. Were there something peculiarly efficient about the free market and inefficient about price fixing, the countries that have avoided the first and used the second would have suffered drastically in their economic development. There is no indication that they have.Socialist industry also works within a frame work of controlled prices. In early 1970s, the Soviet Union began to give firms and industries some of the flexibility in adjusting prices that a more informal evolution has accorded the capitalist system. Economists in the United States have hailed the change as a return to the free market. But Soviet firms are no more subject to prices established by free market over which they exercise little influenced than are capitalist firms.It can be inferred from the author's argument that a price fixed by the seller "seems pernicious" because
In strongly territorial birds such as the indigo bunting, song is the main mechanism for securing g, defining, and defending an adequate breeding are. When population density is high, only the strongest males can retain a suitable are. The weakest males do not breed or are forced to nest on poor or marginal territories.During the breeding season, the male indigo bunting sings in his territory; each song lasts two or three seconds with a very short pause between songs, Melodic and rhythmic characteristics are produced by rapid changes in sound frequency and some regularity of silent periods between sounds. These modulated sounds form recognizable units, called figures, each of which is reproduced again and again with remarkable consistency. Despite the large frequency range of these sounds and the rapid frequency changes that the birds makes, the n umber of figures is very limited. Further, although we found some unique figures in different geographical populations, more than 90 percent of all Indigo bunting figures are extremely stable on the geographic basis . In our studies of isolated buntings we found that male indigo buntings are capable of singing many more types of figures than they usually do. Thus, it would seem that they copy their figures from other buntings they hear signing.Realizing that the ability to distinguish the songs of one species from those of another could be an important factor in the volition of the figures, we tested species recognition of a song. When we played a tape recording of a lazuli bunting or a painted bunting, male indigo bunting did not respond; Even when a dummy of male indigo bunting was placed near the tape recorder. Playing an indigo bunting song, however, usually brought an immediate response, making it clear that a male indigo bunting can readily distinguished songs of its own species from those of other species.The role of the songs figures in interspecies recognition was then examined. We created experimental songs composed of new figures by playing a normal song backwards, which changed the detailed forms of the figures without altering frequency ranges or gross temporal features. Since the male indigos gave almost a full response to the backward song, we concluded that a wide range of figures shapes can evoke positive responses. It seems likely, therefore, that a specific configuration is not essential for interspecies recognition, but it is clear that song figures must confirm to a particular frequency range, must be within narrow limits of duration, and must be spaced at particular intervals.There is evident that new figures may arise within a population through a slow process of change and selection. This variety is probably a valuable adaptation for survival: if every bird sang only a few types of figures, in dense woods or underbrush a female might have difficulty recognizing her mates song and a male might not be able to distinguish a neighbor from a stranger. Our studies led us to conclude that there must be a balance between song stability and conservatism, which lead to clear-cut species recognition, and song variation, which leads to individual recognition.It can be inferred that the investigation that determined the similarly among more than 90 percent of all the figures produced by birds living in different regions was undertaken to answer which of the following questions?I. How much variations, if any, is there in the figure types produced by indigo buntings in different locales?II. Do local populations of indigo buntings develop their own dialects of figure types?III. Do figure similarities among indigo buntings decline with increasing geographic separation?
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