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Why the marginal rate of substitution between two goods must equal the ratio of prices of the goods for the consumer to achieve maximum satisfaction?
Wiki User
∙ 10y ago
the marginal rate of substitution is equal to the ratio of the goods' margial utilities when satisfaction is maximized
Wiki User
∙ 10y ago
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How do you achieve allocative efficiency?
Allocative efficiency is an output level where the price equals the marginal cost of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.
What condition does individual must fulfill to achieve consumer equilibrium?
spend all income vary consumption in a way that the marginal utility of the last dollar spent on all goods is equal. spend all income vary consumption in a way that the marginal utility of the last dollar spent on all goods is equal. spend all income vary consumption in a way that the marginal utility of the last dollar spent on all goods is equal.
How will equilibirium be determined under discriminating monopoly with two markets?
It will be so because it will not achieve a social equilbrium of marginal benefit (demand) = marginal cost (supply). It will instead set a private profit equilibrium where private benefit (marginal revenue) = marginal cost and thus create a deadweight inefficiency equal to the difference in total social surplus between the regions.
Is Economic the social science concerned with the best use of scarce resources to achieve maiximum satisfaction of economic wants?
The best answer is "not exactly." The most popular definition of economics is the social science which studies the allocation of scarce resources to alternate and competing ends. Economics is more concerned with "optimality" (e.g. "best" use) rather than simply maximization of, for example, consumer satisfaction.
How a monopoly firm will not achieve allocative efficiency?
They produce at a different point than a competitive firm, a monopoly produces at a point where marginal revenue= marginal cost, where a competitive firm equates price to marginal cost. The marginal cost curve is lower than the demand curve, but the monopoly charges the price at the demand curve, which is a higher price and a lower quantity than a competitive market would produce.
The process of implementing a systematic plan to make informed consumer decisions based upon specified needs and wants for maximizing personal satisfaction is what?
Rationality is the process of making wise consumer decisions to achieve desired results. This decision also fills specific needs and wants leading to satisfaction.
How realistic is the expectation of job satisfaction?
Job satisfaction is a function of the person's internal state. People who have a tendency to be happy people can achieve job satisfaction.
What is the Mission Statement of Chrysler?
"Chrysler's primary goal is to achieve consumer satisfaction. We do it through engineering excellence, innovative products, high quality and superior service. And we do it as a team." (1988) Cars, Customers, and Returning to Profitability
What condition does individual must fulfill to achieve consumer equilibrium?
spend all income vary consumption in a way that the marginal utility of the last dollar spent on all goods is equal. spend all income vary consumption in a way that the marginal utility of the last dollar spent on all goods is equal. spend all income vary consumption in a way that the marginal utility of the last dollar spent on all goods is equal.
How do you achieve allocative efficiency?
Allocative efficiency is an output level where the price equals the marginal cost of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.
What is the meaning of level of satisfaction?
level of satisafacion means that you are satisfied of of what you have achieve.
How will equilibirium be determined under discriminating monopoly with two markets?
It will be so because it will not achieve a social equilbrium of marginal benefit (demand) = marginal cost (supply). It will instead set a private profit equilibrium where private benefit (marginal revenue) = marginal cost and thus create a deadweight inefficiency equal to the difference in total social surplus between the regions.
What natural object resembling a vagina can you use to achieve sexual satisfaction?
your hand
Define cost measurement?
substitution cost, the measure of the cost you are giving up in order to achieve something else
One of the most important ways to achieve customer satisfaction is to do your best by being?
prepared
Customers will demand different responses to create rapport and achieve customer satisfaction?
Each class of customer will demand different responses to create rapport and achieve customer satisfaction. The class of a customer is determined by their buying patterns and payment behavior.
Is Economic the social science concerned with the best use of scarce resources to achieve maiximum satisfaction of economic wants?
The best answer is "not exactly." The most popular definition of economics is the social science which studies the allocation of scarce resources to alternate and competing ends. Economics is more concerned with "optimality" (e.g. "best" use) rather than simply maximization of, for example, consumer satisfaction.
