Conservapedia - User contributions [en]

Constant returns to scale

2007-05-23T21:02:03Z

Chris8490:

'''Constant returns to scale''' occur when a company increases its [[Input]] by x% and its output also increases by x%. If a company with constant returns to scale doubles its facilities, workers, and materials, the amount of products it makes will also double.

Competition

2007-05-23T21:01:17Z

Chris8490:

Competition is the efforts of multiple independent parties to achieve a common goal.

As an economic term, competition refers to the rivalry between firms to sell the goods or services they provide. Economists generally classify different levels of economic competition by the following models:Perfect Competition, Perfectly Contestable Market, Monopolistic Competition, Oligopoly, Cartel and Monopoly

Competition

2007-05-23T21:01:00Z

Chris8490:

Competition

2007-05-23T20:59:40Z

Chris8490: New page: Competition is the efforts of multiple independent parties to achieve a common goal. As an economic term, competition refers to the rivalry between firms to sell the goods or services th...

Competition is the efforts of multiple independent parties to achieve a common goal.

As an economic term, competition refers to the rivalry between firms to sell the goods or services they provide. Economists generally classify different levels of economic competition by the following models:

Perfect Competition
Perfectly Contestable Market
Monopolistic Competition
Oligopoly
Cartel
Monopoly

Complementary goods

2007-05-23T20:45:54Z

Chris8490:

'''Complementary goods''' are commodities that depend on each other such that an increase in the price of one good causes a decrease in the demand for the related good. For example, an increase in the price of [[French toast]] could cause a decrease in the demand for [[maple syrup]], because those two goods are often consumed together. An increase in the price of [[salad dressing]] could cause a decrease in demand for [[salad]]. Thus, complementary goods will always have a negative cross elascticity of demand (% change in demand for good A divided by % change in price of good B)

Complementary goods are the opposite of [[substitute goods]].

[[Category:Economics]]

Coase theorem

2007-05-23T20:39:20Z

Chris8490:

The Coase theorem states that if property rights are well-defined and [[transaction costs]] (costs of negotiating) are zero, then the most efficient or [[Pareto optimal]] economic activity will occur regardless of who owns the property rights. It does not matter who owns the property rights because negotiation will and market transactions will ensure optimal allocation of property.

This simple theorem, first announced in a 1960 paper <ref>Ronald H. Coase, “The Problem of Social Cost,” 3 J. Law & Econ. 1 (1960)</ref> by [[Ronald Coase]] that won the Nobel Prize for Economics in 1991, has powerful implications for economics, law and even philosophy. It is a conservative theorem and thus most schools and professors downplay or distort it. Coase himself was vilified for years by liberals for it.

The implications in law are that the best a judge can do for the economy is to minimize transaction costs, such as bureaucracy. Court decisions that impose additional procedural obligations, such as ''Goldberg v. Kelly'' (1969), can only detract from overall wealth and efficient economic behavior. The Coase theorem implicitly holds that much of the legal attempts to improve the economy are illusory, because there is no way to improve over the combination of clear legal entitlements and no government interference.

The implications in economics are that governments must intervene to lower transaction costs where feasible.

The implications in politics or philosophy are that, in a free society, it is almost irrelevant who has wealth and who does not with respect to economic activity. Useful or desired economic activity will occur regardless of who owns property or wealth. A list of the wealthiest individuals (Forbes 500) is meaningless, as wealth will flow to efficient activity regardless of who controls the money.

'''Sources''': <references/>

[[Category:Mathematics]]

[[Category:Economics]]