Question

In standard neoclassical model the initial distribution of resource in a market economy is determined by

Answer 1

Neoclassical economics is an approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand. This determination is often mediated through a hypothesized maximization of utility by income-constrained individuals and of profits by firms facing production costs and employing available information and factors of production, in accordance with rational choice theory. Neoclassical economics dominates microeconomics, and together with Keynesian economics forms the neoclassical synthesis which dominates mainstream economics today [better source needed] Although neoclassical economics has gained widespread acceptance by contemporary economists, there have been many critiques of neoclassical economics, often incorporated into newer versions of neoclassical theory. I hope the answer was helpful to you If it was please mark it as brainlist ❤️

Answer 2

Supply and demand in a neoclassical model of economy is determined by output goods and income decentralization through supply and demand. If output is large the supply of goods will be high this will mean a reduced demand of goods in the market which will definitely lower the prices of commodities in the market. The basic of supply of goods in the  market is therefore the price and output.

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