Ask an Economic Question

You are welcome to ask any questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.

I am looking to explain economic principles / ideas/ recent developments in economics. I can’t promise to answer, but will try if it meets the criteria below.

  • Please don’t ask me to do your coursework / assignment e.t.c. (I can usually tell if it is a homework question!)
  • Please don’t ask any maths calculations.
  • The question and answer will be published here so that everyone can see it (including your teacher!)
  • I aim to try and simplify economics; as a rough guide, I would aim at an understanding similar to a good British A Level student.
  • I am looking to explain economic principles/ideas/ recent developments in economics.
  •  I will answer as a new post, if you leave email address, I’ll usually send quick email. Check home page of blog for new post. With question and answers

Add comment at bottom of post.

mail(at)econoimcshelp.org

2,583 thoughts on “Ask an Economic Question”

  1. i want to know reasons why the goverment should decide the maximum selling price of a product so that the citizens can afford to buy it?

  2. because it has all the characteristics of goods that have inelastic prices have.example scarcity, and the number of producers being few in the economy.

  3. How does a price discriminating monopoly firm decide total output and price to be charged in each market ?
    Pls reply urgently ….I’m waiting for your valuable answers….ur’s faithfully……..Abhi

  4. How is profit maximised when MC=MR ? I assumed that maximisation of profit would occur when MR-MC is at its maximum.

    • The key is that profit maximisation is where marginal revenue = marginal cost. If MR>MC you can increase total profit by producing more.
      Profit is also maximised at the point where the gap between Total Revenue (TR)- Total cost (TC) is at its maximum.

  5. Why might two countries choose to trade with one another despite one of the countries having superior technology in production? What determines the distribution of the gains from trade between the nations?

  6. please i need an explanation on the relationship that exist between micro and macro economics when we are dealing with economics methodology analysis

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