Latest Articles
Pricing and economic surplus (7/7/2006)
Pricing affects how economic surplus is distributed between consumers and producers and thus the incentive and resources to come up with innovative products.
Pricing affects how economic surplus is distributed between consumers and producers and thus the incentive and resources to come up with innovative products.
Price Signals as Guides for Resource Allocation (7/7/2006)
High prices for scarce resources ensure that these resources will be used for only high-valued purposes.
High prices for scarce resources ensure that these resources will be used for only high-valued purposes.
A Matter of Opportunities (7/7/2006)
The lack of alternative opportunities reduces the cost or enhances the attraction of a given action. On the other hand, the abundance of alternative opportunities increases the cost or reduces the attraction of a given action.
The lack of alternative opportunities reduces the cost or enhances the attraction of a given action. On the other hand, the abundance of alternative opportunities increases the cost or reduces the attraction of a given action.
Maximization and Optimization at the Margin (7/7/2006)
Optimizing at the margin can bring about static economic efficiency.
Optimizing at the margin can bring about static economic efficiency.
Market Intervention and Regulation (7/7/2006)
Market regulation may be justified under some circumstances to increase economic efficiency.
Market regulation may be justified under some circumstances to increase economic efficiency.
How Much Is Anything Worth? (7/7/2006)
Price must cover cost for business survival but its level above cost varies with the product life cycle.
Price must cover cost for business survival but its level above cost varies with the product life cycle.
