Allocation of a countrys resources to the price mechanism, Microeconomics

Assignment Help:

What are the advantages of leaving the allocation of a countrys resources to the price mechanism?

Ans) The main conditions needed are:

1. Either a finite number of agents or products.

2. No externalities - That is, the consumption of single person should not harm or advantage anyone else.

3. No matter how much a person is consuming, they must be able to be made slightly happier by intense a bit more of something.


Related Discussions:- Allocation of a countrys resources to the price mechanism

Use a ppf to explain the trade-offs that all economies face, Use a PPF to e...

Use a PPF to explain the trade-offs that all economies face. All countries must construct some sort of system whereby output, allocation and distribution of goods is decided.

What is my expected benefit?, I am risk averse, and trying to maximize my e...

I am risk averse, and trying to maximize my expected value of c0, 5, where c is my fortune. I have 50.000 in cash, and also art with a value of 200.000 which I keep in my basement.

Organic chemistry, methylcyclohexene + HI by the catalyst of H3PO4

methylcyclohexene + HI by the catalyst of H3PO4

EM13106443, May I get a quote on order number EM13106443. Thanks

May I get a quote on order number EM13106443. Thanks

Arbitrage pricing theory, Arbitrage Pricing Theor y Arbitrage ...

Arbitrage Pricing Theor y Arbitrage defines the procedure of continuously buying a security for privacy, currency, or commodity on one market and selling it in another

Explain the evolution of exchange rate system, Problem 1 (a) Explain th...

Problem 1 (a) Explain the evolution of exchange rate system in Mauritius. (b) According to you, what factors determine exchange rates in the long run? Problem 2 "Inf

Demand, what are tne methots of demand forecasting ?

what are tne methots of demand forecasting ?

Determinants of investments, Determinants of investments: Expected Ra...

Determinants of investments: Expected Rate of Return: Investment spending is guided by the profit motive; thebusiness sector buys capital goods only when it expects such

Law of diminishing marginal utility, law of diminishing marginal utility it...

law of diminishing marginal utility its assumptions, limitation, and its practical importance

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd