ECON 4059 Chapter Notes - Chapter 4: Economic Surplus, Marginal Cost, Marginal Utility
7 Feb 2014
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Econ 1000 chapter 4 question: we need methods of allocating resources because we need an efficient and fair method of distribution of our scarce resources. And to maintain order while distributing the resource: personal preference such as will and gifts. Resources are transferred through personal reasons and likings and are uninfluenced by other factors such as legal and economical: market price such as when a company introduces a product and reach mutual benefit with the consumers. The maximum supplied and maximum earned and to restrict demand. Command a ceo orders subordinates to execute a mission. Personal characteristics job search with education and experience requirements. Force law enforcements: market price monopoly. First come first serve hospital where there are levels of emergency. Force laws enforced through bribery: we measure the value or marginal benefit of a good or service through the demand curve.
