Free market using marginal cost analysis

Assignment Help Business Economics

Reference no: EM13851687

Consider the problem of the apple farmer. In your own words, explain the farmer’s optimal solution in the free market using marginal cost analysis. How might this solution be suboptimal from society’s perspective? Explain who benefits and is harmed under the free market solution. Explain who benefits and is harmed under the government subsidy solution? Using economic analysis and the guiding principles of sustainability, justify which solution is best.

Reference no: EM13851687

Questions Cloud

Suppose you are the owner-operator of gas station : Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level. You recently learned that your rival is retiring and closing his station in two weeks...

Affordable care act-law of government programs : The affordable care act made important changes to the law of government programs and to the law of fraud and abuse. Please explain what changes were made and what programs this involved specifically.

According to the information and decision-making theory: : According to the information/decision-making theory:

Human service ethics standards with biblical standards : Search the web for ethical standards in the Human Services field, then find at least 5 Scriptures describing how we should treat others and care for them. Compare and contrast the Human Service ethics standards with biblical standards. How are they a..

Free market using marginal cost analysis : Consider the problem of the apple farmer. In your own words, explain the farmer’s optimal solution in the free market using marginal cost analysis. How might this solution be suboptimal from society’s perspective? Explain who benefits and is harmed u..

Public debt and the government budget deficit : A paragraph or so, explain the differences between the public debt and the government budget deficit. Explain how deficit spending could be a burden to future generations.

Consumers have less income to spend : In a recession, consumers have less income to spend. As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?

An increase in the number of fast-food restaurants : An increase in the number of fast-food restaurants

Plywood is used in the construction of houses : Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses?

User Account

All Pages