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Describe What Happens Automatically in Markets to Solve These Allocation

question 38

Essay

Describe what happens automatically in markets to solve these allocation problems.Relate your explanation to markets in general and to the graph in Problem 33 above.


Definitions:

Satisfaction

The feeling of pleasure or fulfillment that comes from meeting needs, desires, or expectations.

Least Cost

A principle or method aimed at minimizing the cost of achieving a specific production or economic objective.

Marginal Cost

The expense incurred from the manufacture of an additional single unit of a product or service.

Quantity Discount

A reduction in price per unit of a good or service based on the amount of the purchase, used to encourage larger orders.

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