Why do economists show little interest in how the benefits from ...

[jazziefee]

Why do economists show little interest in how the benefits from an exchange are shared between the two parties?

Question 2

If a firm experiences economies of scale throughout, it will have a horizontal long-run average-total-cost curve.
 a. True
  b. False
  Indicate whether the statement is true or false

[Jayson]

Answer to Question 1

To economists, what matters most is that the exchange between two individuals takes place whenever an opportunity for the same arises. The fact that exchange benefits both parties is a positive statement. However, normative economics has no way to determine which of the two individuals deserves a higher share of the benefit resulting from the exchange.

Answer to Question 2

False

[jazziefee]

Thank you

[Jayson]

No problemo