0
What is the significance of the price being equal to the marginal cost in the context of economic theory?
In economic theory, when the price is equal to the marginal cost, it signifies an efficient allocation of resources. This is because it indicates that the production of goods or services is being done at a level where the cost of producing one more unit is equal to the price at which it is sold. This condition is known as allocative efficiency and is considered ideal for maximizing overall welfare in an economy.
What else can I help you with?
Is it possible for marginal utility to be negative in economic theory?
Yes, it is possible for marginal utility to be negative in economic theory. This occurs when consuming an additional unit of a good or service decreases overall satisfaction or utility.
Why is marginal analysis involved in economics?
Economic theory makes much use of marginal concepts. Marginal cost, marginal revenue, marginal rate of substitution, marginal utility, marginal product, and marginal propensity to consume are a few examples. Marginal means on the margin and refers to what happens with a small change from the present position. It is the concept of economic choices to make small changes rather than large-scale adjustments. Marginal analysis is the key principle of profit-maximization in firms and utility maximization among consumers.
What does marginal benefit means?
Marginal benefit refers to the additional satisfaction or value gained from consuming one more unit of a good or service. It helps individuals and businesses make decisions by comparing the extra benefit to the additional cost incurred. When the marginal benefit exceeds the marginal cost, it typically justifies the decision to proceed with that additional unit. This concept is central to economic theory and decision-making.
How would you answer someone who says that marginal utility theory is useless because utility cannot be observed?
How would you answer if someone says that “marginal utility theory is useless because utility cannot be observed”?
How can the demand curve be derived using the marginal utility theory?
Marginal utility is the key concept underline demand .The height of a demand curve reflects marginal utility.The marginal utility curve resembles the demand curve. So, it is through the marginal utility we get the demand curve.
Is it possible for marginal utility to be negative in economic theory?
Yes, it is possible for marginal utility to be negative in economic theory. This occurs when consuming an additional unit of a good or service decreases overall satisfaction or utility.
Why is marginal analysis involved in economics?
Economic theory makes much use of marginal concepts. Marginal cost, marginal revenue, marginal rate of substitution, marginal utility, marginal product, and marginal propensity to consume are a few examples. Marginal means on the margin and refers to what happens with a small change from the present position. It is the concept of economic choices to make small changes rather than large-scale adjustments. Marginal analysis is the key principle of profit-maximization in firms and utility maximization among consumers.
What has the author Carola Jacobi written?
Carola Jacobi has written: 'Hausfrauen, Bauern, Marginalisierte' -- subject(s): Production (Economic theory), Marginal productivity
How can you put synoptic in a sentence?
The synoptic paper looks at economic theory within the European context.
Who propounded marginal productivity theory of distribution?
TAUSSIG
What has the author Hideaki Tamura written?
Hideaki Tamura has written: 'Human psychology and economic fluctuation' -- subject(s): Business cycles, Demand (Economic theory), Marginal utility, Psychological aspects, Psychological aspects of Business cycles
What does marginal benefit means?
Marginal benefit refers to the additional satisfaction or value gained from consuming one more unit of a good or service. It helps individuals and businesses make decisions by comparing the extra benefit to the additional cost incurred. When the marginal benefit exceeds the marginal cost, it typically justifies the decision to proceed with that additional unit. This concept is central to economic theory and decision-making.
How would you answer someone who says that marginal utility theory is useless because utility cannot be observed?
How would you answer if someone says that “marginal utility theory is useless because utility cannot be observed”?
How can the demand curve be derived using the marginal utility theory?
Marginal utility is the key concept underline demand .The height of a demand curve reflects marginal utility.The marginal utility curve resembles the demand curve. So, it is through the marginal utility we get the demand curve.
What is the significance of the keyword "tuning symbols" in the context of music theory?
In music theory, "tuning symbols" are important because they indicate how a musical instrument should be tuned to achieve the correct pitch and harmony.
What is the significance of 3630?
The number 3630 can hold significance in various contexts, such as mathematics, history, or culture. Mathematically, it can be factored into its prime components, which may be relevant in number theory. Additionally, in a historical context, it may refer to a specific year or event if associated with a timeline. Without further context, its specific significance remains ambiguous.
Expain law of equi marginal utility or law of substitution with graph and its assumption?
law of equi marginal theory by suhail bba part 1salu
