Question: a) Using the conventional symbols (D, S, P, Q, MC, MR), define and discuss all the six relations that constitute the economic equilibrium problem. b)

a) Using the conventional symbols (D, S, P, Q, MC, MR), define and discuss all the six relations that constitute the economic equilibrium problem.

b) Explain why the relation D>S is not an equilibrium condition.

c) Explain why the relation (MC < MR) is not an equilibrium condition.

d) Explain the meaning of “free good.”

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