Assuming one can derive a correct input-output table, are there still any reasons to prefer the market to central planning?
The market reflects consumer choice. The input-output table considers only production efficiency. Also, the market can react more quickly to changes in cost and especially to changes in demand. An input-output table is expensive to construct and use, whereas the market doesn't requires a special computer program. Finally, the government would have to decide what will be produced in a centrally planned economy, versus consumers deciding in a market.
Economics
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Indicate whether the statement is true or false
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If the inverse demand function for a monopoly's product is p = 100 - 2Q, then the firm's marginal revenue function is
A) -2. B) 100 - 4Q. C) 200 - 4Q. D) 200 - 2Q.
Economics