What is market equilibrium maximizes social welfare

Assignment Help Microeconomics

Reference no: EM133435959

Assignment:

For mainstream economists, the theory of equilibrium shows why capitalism is the best possible economic system. What assumptions must be true for the market to reach equilibrium on its own (this was discussed in the video for the week towards the end)? Are these assumptions realistic? Furthermore, what is actually meant by saying that market equilibrium maximizes social welfare-- what exactly is being maximized? Given everything we've learned in class so far, what might be some issues with using the maximization of this (thing/concept that is maximized at equilibrium) as a measurement for welfare?

Reference no: EM133435959

Questions Cloud

What is the political and economic history of the region : What is the political and economic history of the region, and how has that history shaped the laws and practices? What is the cultural profile

What is will marginal productivity from studying supply : What is Will's marginal productivity from studying supply and demand problems? What is David's?

Capacity to influence leaders to think outside : What is a book that, highlight (historical or fiction) that you think has the capacity to influence leaders to think outside themselves and to think broadly

What are your closest competitors doing when recruiting : What are your closest competitors doing when recruiting similar positions within their organization? (You may not find an exact match; in which case you should

What is market equilibrium maximizes social welfare : Furthermore, what is actually meant by saying that market equilibrium maximizes social welfare-- what exactly is being maximized?

Compare italy and china using hofstedes theory : Compare italy and china using hofstede's theory by providing advantages and disadvantages for each dimension for each country. please provide citations in apa 7

Describe how value is created for each stakeholder : Describe how value is created for each stakeholder, and in what ways will the team positively impact the business as a whole?

Human resources fits into the organizational structure : Define an organization, including its role and levels of responsibility, and where Human Resources fits into the organizational structure

Demonstrated low machiavellianism : Describe your behaviour in a situation where you demonstrated low Machiavellianism. AT school and work

User Account

All Pages