Answer to Question #53242 in Microeconomics for helena

Question

In neoclassical microeconomics it is assumed that the prices rational agents respond to are:

A Its absolute level on any given day
B Its absolute level on any given day divided by the relevant price index
C Its absolute level on any given day minus any external costs of the production of the good
D Its price relative to the prices of other goods and services

7 In neoclassical microeconomics it is assumed that the rational agents make decisions based on:

A Average net returns to a prospective action
B Marginal net returns to a prospective action
C Costs already incurred
D None of the above because neoclassical microeconomics does not assume rational behaviour

Answer 1

In neoclassical microeconomics it is assumed that the prices rational agents respond to are:

D Its price relative to the prices of other goods and services

7. In neoclassical microeconomics it is assumed that the rational agents make decisions based on:

B Marginal net returns to a prospective action