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Reduces the cost of producing grapes

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Reference no: EM132271828

Question: Are the following 3 scenarios true or false? Please explain the reason for your answer.

  1. As a price-taker, assuming there are no externalities, the market equilibrium is also the efficient outcome.
  2. Suppose a new fertilizer is developed which reduces the cost of producing grapes. This new fertilizer will result in excess supply of wine in the market.
  3. Economists as a discipline deals only with logical deduction. Economists should never make claims which embody moral- or value-judgments.

Please note, this question is a re-submission after the first 24 hour from my first submission. I hope I will get an answer as soon as possible because the assignment is due in less than 15 hours, please.

Reference no: EM132271828

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