Explain key assumptions and desired properties, Microeconomics

Assignment Help:

Explain the key assumptions and desired properties commonly used economics.

Economists generally make all or some of the given key assumptions and a condition while they study economic problems as follows:

a. Individuals are restricted rational: self-interested behavior assumption;

b. Scarcity of resources: individuals tackle scarce resources;

c. Information regarding individual’s economic characteristics and actions is unfinished or asymmetric to a decision marker. As like a decentralized decision making is wanted.

d. Economic freedom: It is voluntary cooperation and voluntary exchange;

e. Incentive compatibility of parties: there the system or economic mechanism must solve the problem of interest conflicts in between individuals or economic units;

f. Well-described property rights;

g. Equity into opportunity;

h. Allocate efficiency of resources;

Relaxing any of such assumptions may result in various conclusions.


Related Discussions:- Explain key assumptions and desired properties

MR, prove that the utility approach and the indifference curve approach yie...

prove that the utility approach and the indifference curve approach yield the same consumer equilibrium

#title.microeconomics issues., how microeconomic issues maybe represented ...

how microeconomic issues maybe represented using production posibility curve

Price elasticity of demend, hoe does the knowledge of price elasticity of d...

hoe does the knowledge of price elasticity of demand important to the government

Draw a marginal utility curve , Draw a marginal utility cureve for a good t...

Draw a marginal utility cureve for a good that has a constant marginal utility

Explain how a floating exchange rate works, Explain how a floating exchange...

Explain how a floating exchange rate works and the variables which affect the rate. Define a floating exchange rate as the price of a currency (in terms of another or basket of

Economic growth, In his 2009 budget proposal for the U.S., President Obama ...

In his 2009 budget proposal for the U.S., President Obama wrote, "Unfortunately, we are also inheriting the worst economic crisis since the Great Depression which will force us to

Find the total cost and marginal cost function, Question : (a) Suppose...

Question : (a) Suppose Firm A is a perfectly competitive firm producing good X and faces the following average revenue and average cost Average Revenue: P = 10 Average Co

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