--%>
Assignment Help - homework help

The market system provides such a variety of desired goods

Explain the statements: The market system provides such a variety of desired goods and services precisely.

E

Expert

Verified

The market system provides such a variety of desired goods and services precisely because no single individual or small groups is deciding what the economy will produce. Each individual consumer will choose a variety of goods and services that in combination will maximize his/her satisfaction (utility). To maximize profits, producers must respond to the desires of the individual consumer.

   Related Questions in Business Economics

  • Q : Perfectly competitive market and its

    Which of the given is not a characteristic of a perfectly competitive market structure: w) there are a very huge number of firms which are small compared to the market. x) All firms sell the same products. y) There are no restrictions to entry through

    		•
  • Q : Prices are the automatic regulator

    “Prices are the automatic regulator that tends to keep production and consumption in line with each other.”  Explain.

    		•
  • Q : Economic sense production methods

    Evaluate and explain the statements: “In the economic sense production methods are the most efficient methods, once resource prices are considered and are lesser in sense of engineering”.

    		•
  • Q : Competitive market economy will make

    Briefly explain how the competitive market economy will make the needed adjustments to reestablish an efficient allocation of society’s scarce resources?

    		•
  • Q : Production possibilities curve is a

    How a production possibilities curve is a graphical representation of choices?

    		•
  • Q : Summary of what can cause an increase

    Illustrate a summary of what can cause an increase in demand?

    		•
  • Q : Elucidate types of unemployment

    Elucidate types of unemployment?

    		•
  • Q : Problem on utility function Matt’s life

    Matt’s life is divided into two time periods, young and old, and his utility is a function of two “goods”:  consumption when young and consumption whenever old.  Consumption when young and consumption when old are both of normal goods to Ma

    		•
  • Q : How might government correct this

    What divergences arise between equilibrium and an efficient output spillover benefits are present?  How might government correct this divergence?

    		•
  • Q : Explanation of theory of pricing for

    The theory of pricing for particular goods explained in Adam Smith’s Wealth of Nations is most consistent along with: (1) mercantilist doctrine. (2) Richard Cantillon’s distinction between “value in

    		•