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

Firms in a competitive markets, illustrate a long-run equilbrium using diag...

illustrate a long-run equilbrium using diagrams for the gold market and for a representative gold mine

What is economic efficiency, Q. What is Economic efficiency? Economic ef...

Q. What is Economic efficiency? Economic efficiency Explain a situation where the total value of the end uses, to which the resources are put, is maximised. A consequence is th

Available resources with the desired goals, Available resources with the de...

Available resources with the desired goals: To match the available resources with the desired goals: The complementary nature of some investment decisions make for planning. T

Find steady state level - production function, 1. Consider a model economy ...

1. Consider a model economy with a production function Y = K 0.2 (EL) 0.8 , where K is capital stock, L is labor input, and Y is output. The savings rate (s), which is define

Discriminatory fee structure, Discriminatory Fee Structure This method...

Discriminatory Fee Structure This method discriminates between courses and the economic condition of the family to which the student belongs. The cost of providing the educati

Rent, determination of rent

determination of rent

Individual demand curve - effect of price change, Individual Demand * T...

Individual Demand * The Individual Demand Curve  - Two significant Properties of Demand Curves - 1) The level of utility which can be attained changes while moving along

Price Elasticity, About four years ago, Kanye West performed at the UIC Pav...

About four years ago, Kanye West performed at the UIC Pavilion. General admission tickets were priced at $30. Concert promoters say that price elasticity of demand for general admi

Why might an oligopoly be reluctant to change its price, Why might an oligo...

Why might an oligopoly be reluctant to change its price? When some large firms have high total market share and are non-collusive, there is a strong element of interdependency.

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