Allocation function, Microeconomics

Allocation Function

The shifting or reallocation of production property into or out of markets based on shifts in prices for the products or services produced in that market. If price moves in a technique that indicates an increase in requirement, more firms may try to enter that market and gives a supply to meet that requirement.  Conversely, if price shifts in such a way that demand looks to be diminishing, several firms may choose to leave the market and direct their resources elsewhere.

Posted Date: 10/15/2012 2:19:43 AM | Location : United States







Related Discussions:- Allocation function, Assignment Help, Ask Question on Allocation function, Get Answer, Expert's Help, Allocation function Discussions

Write discussion on Allocation function
Your posts are moderated
Related Questions
During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use supply and demand diagrams, how the following markets are affected in terms of pr

Determinants of the price elasticity of demand are explained below: 1. Number of close substitutes present within the market - The more and closer substitutes available in the

A control in economics means a steady profit rate that is enhancing. Thus, after one year you could have £1mill profit then the next year £3mill profit etc.

Problem: (a) Define money and briefly explain its core functions. (b) Explain the relationship between interest rate and price of bonds, illustrate using example. (c)

What is the importance of microeconomics in study of managerial economics?   Normal 0 false false false EN-IN X-NONE X-NONE

Determinants of Private Demand - Non-Monetary Benefits Social status associated with university degrees is a determinant of investment decisions in higher education in the cas

After I figure a table what do I do with it? I have no book and no study materials to answer my question

Consider 2 firms i=1,2 producing quantities q1 and q2 respectively. Let the market price be given by P=a-b(q1+q2). Firm 1''s Marginal cost c is common knowledge but 2''s cost is no

Development: Economic development is the process through that a country's economy expands and improves in both qualitative and quantitative terms. Economic development requires co

Draw an indifference curve for consumption and hours of work. (Hint: in class we discussed indifference curves for consumption and hours of leisure, this is different.)