Show the relationship between total benefits and total costs

Show the relationship between total benefits and total costs when a market economy is in general equilibrium. What is meant by \"general equilibrium\" and how is it different from \"partial equilibrium\"? How would you characterize capitalism? What philosophy is underpinning capitalism? Explain in some detail the MPD-KCT model as described in class. What does it mean to have a mixed economy? Of what importance is where a country is placed in the model?

Solution

2.General equilibrium shows the behaviour between supply,demand and price in various economy to visualise that a pair of price is available.

The General Equilibrium theory majorly focus on Macro economics where it focus on Top to bottom and bottom to top Approach

in simple calculation of General equilibrium the price of one thing is depend on the price of another thing.

Where as the partial equilibrium is not in such a way here the point to be focused is the change in a price of thing and thinking that the price of the other remains constant

Total benefit is something like the consumer is willing to pay a maxmium amount for a certain products

where as the total cost is cost of producing certain number of goods

Net benefits=Total benefits-total cost

3.Under captalism the means of ownership is moved in the hands of private people in any production units the country majorly focus on privatisation of production

When we talk about characterize captalism is about based on individual principles rights

it consists of Philosophies Like Production Vs Force,The moral and the practical.

4.please provide MPD-KCT Full Form the given Question data is in adequate