The Key Difference Between Georg Simmel and Thorstein Veblen's Theories

question 20

True/False

The key difference between Georg Simmel and Thorstein Veblen's theories of stratified consumption is that Simmel thinks the lower classes invent their own fashionable styles,while Veblen thinks they simply mimic the taste of the upper class.

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Definitions:

Economic Profits

The surplus remaining after total costs are deducted from total revenue, factoring in both explicit and opportunity costs.

Normal Rate

Refers to the standard, expected rate in financial or economic contexts, often used as a benchmark.

Short Run

The period of time for which two conditions hold: The firm is operating under a fixed scale (fixed factor) of production, and firms can neither enter nor exit an industry.

Total Variable Costs

The sum of all costs that vary with the level of output or production.