Why is market definition important for economic decision making?

Q: What does the rise of alternative products like Puff Bar tell you about the overall role of market…

A: Electronic cigarettes (e-cigarettes) extend the market to smoking as well as non-smoking men, women,…

Q: What is conspicuous consumption?

A: Conspicuous consumption is a practice of of purchasing goods and services with the aim of displaying…

Q: What is the Benefit-Cost Analysis?

A: A Benefit-cost analysis which is also known as a cost-benefit analysis is used to predict the costs…

Q: concepts of Market actions and its implications.

A: Market action: Market action refers to that market that reflects all relevant information and…

Q: List two types of utilitarianism?

A: In economics, Utilitarianism refers to the ideology of making activities that result in happiness or…

Q: re prices change people's behavior in efficient manners?

A: Consumer behavior: It is a process to study the behavior of a consumer or an individual which shows…

Q: In economics, what is an example of selection?

A: Economics refers to one of the branch of social studies which focuses on the living of people on the…

Q: In an auction, potential buyers compete for a good by submitting bids. Adam Gallinsky, a social…

A: An auction is a public sales process of buying and selling of property and goods and services by…

Q: Why do Economic agent make decisions at the margin

A: It is very important that decisions are made at the margin. Economic agent take risk factor and…

Q: what is the formula for calculating consumers net benefit in microeconomics?

A: Answer: For a consumer, the net benefit means consumer surplus. Consumer surplus is the difference…

Q: Draw graphs to show "People respond to incentives and disincentives" in relation to the demand curve…

A: The demand curve represents the quantity demanded for a good at different prices keeping other…

Q: How equilibrium is determined in microeconomics?

A: Equilibrium is defined as a state in the economy where all economic forces are balancing each other.

Q: Market failure means that?

A: The reasons for the market failure can be due to the: positive and the negative externalities,…

Q: How does cost-benefit analysis differ from cost-effectiveness analysis?

A: Definitions: Cost-benefit analysis:  A cost-benefit analysis assesses the profitability of…

Q: Offer an example of a market where you consider the real-world outcome to be unacceptable. Why is…

A: Usually, the market outcomes are considered efficient and socially optimal ones. The outcomes occur…

Q: What do you understand by the following terms:                  - Bounded rationality…

A: Bounded Rationality - Individuals are considered to be rational when making decisions, however,…

Q: arginal analysis is one of the most useful concepts in economic decision making. Discuss and  show…

A: MARGINAL ANALYSIS: Marginal analysis is one of the important decision-making tools using which…

Q: Explain the decision-making of economic agents (graphically and mathematically).

A: Economic agents are nothing but the players the impact and get impacted by the economic events .…

Q: Why is economics often described as the science of constrained choice?

A: The economics is the science which deals with the allocation of these limited resources to satisfy…

Q: What are transaction costs? How does opportunistic behavior tend to increase transaction cost?

A: Cost: It refers to the goods and services price that is charged by the producer. The more the cost…

Q: Why do economic agents always respond to incentives

A: Why do economic agents always respond to incentives? Answer: Positive incentives are those rewards…

Q: How does drug addiction affects microeconomics?

A: Microeconomics is one of the major branches of economic which is concerned with the study of…

Q: In capitalist economy, does it project a fair price for the consumer?

A: There are various types of economy . Capitalist economy, socialist economy and mixed economy . Where…

Q: What is the importance and benefits of microeconomics?

A: Economics is the study of how the scarce resources of society are exploited. Economics is a social…

Q: Why is the law of demand and the law of supply a useful economic model

A: The law of both demand and supply shows the interaction between buyers and sellers of the good or…

Q: what are some keypoints about behavioral economics?

A: Behavioral economics is the study of psychology as it deals with the economic decision-making…

Q: In what ways do human decision making differ from rational conventional economic theory

A: The rational behaviour is a decision-making process in which chgoices are made in order to obtain…

Q: What type of economists believe that markets naturally self-correct, and will reward good strategies…

A: Laissez fair economics theory advocates non-government intervention in the economic activity.  They…

Q: Describe what economic incentives are

A: Economic incentives are financial motivations that influence the behavior of individuals,…

Q: What is scarce in economics

A: Economics is a subject of social science. It is commonly said that economics is the queen of social…

Q: Why is the equality between the marginal benefit and marginal cost of an action an equilibrium…

A: Marginal benefit and marginal cost are two different concepts.  Marginal benefit is the amount the…

Q: What does rationalism mean within the context of political economy?

A: Political economy refers to the branch of social sciences that studies the interrelationships among…