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What Is the Definition of Herding and How Does It

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Essay

What is the definition of herding and how does it contribute to bubbles?


Definitions:

Product Price

The monetary cost consumers are required to pay to acquire a good or service.

Market Wage Rate

The prevailing rate of pay for a particular job in a specific market or geographical area.

Employ

To hire or use the services of someone or something for a particular purpose or job.

Profit-maximizing

The process by which a firm determines the price and output level that returns the maximum profit.

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