market structure and pricing decision applied problems
Just need help to see if I am in the right direction if there any think wrong need help with it.
What is the scientific method and how does it relate to theoretical economics? What is the difference between a hypothesis and an economic law or principle?
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good. Answer:
Problem: Luke likes to consumer CDs (good1) and pizzas (good 2). His preference over both goods is given by the utility function U(x1; x2) = x21
When the prices for doughnuts and croissants are $.50 and $1 correspondingly: (w) the opportunity cost for one doughnut is two croissants. (x) this is better to buy two doughnuts than one croissant. (y) one croissant will make Pierre twice as happy as one doughnut. (z
Entrepreneurs: (w) undertake risky forms of production to gain uncertain profits. (x) obtain interest payments for their services. (y) are usually overcompensated for their innovations. (z) receive virtually all their wealth by inheritance.
Contrast how a market system and a command economy try to cope with economic scarcity?
Explain the foundation of economics where society’s material wants are unlimited?
From the heterodox approach, what options does the enterprise need to produce more output? What effect do these options put on its cost structure?
Question: To determine the real exchange rate, what two pieces of information do you need in addition to the nominal exchange rate? Answer: Q : Explain the cause of Trade barriers Explain the cause of Trade barriers?
Explain the cause of Trade barriers?
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