1. There is a value paradox between diamonds and water: water is very useful and essential for people, but it is very cheap; Diamonds are of limited use to people, but they are very expensive.

This paradox can be explained from both demand and supply, because the price is determined by demand and supply and demand. From the demand side, the price depends on the marginal utility of goods, not the total utility. For water, the water source is abundant and people consume a lot of water, so its marginal utility is very small and the price is very cheap. In the same way, people have great marginal utility to diamonds, and their prices are correspondingly expensive. From the supply side, because of the abundant water resources, the cost of producing human water is very low, so its price is also low. Diamonds are scarce and the cost of producing diamonds is high, so diamonds are expensive. Considering both supply and demand, water is cheap and diamonds are expensive.

We can consider the elasticity of demand. The demand for agricultural products is inelastic, which means that the rate of demand change is less than the rate of price change. The fundamental reason for this phenomenon is that food is a necessity of life and the demand price elasticity is very small. Because the decline in the balanced price of agricultural products is greater than the increase in the balanced quantity of agricultural products, the total income of farmers will eventually decrease.

3. First of all, we should consider that oil is a non-renewable energy source and a very limited storage energy source. In the increasingly tense global energy crisis, from a long-term and effective point of view, in order to ensure the interests of oil exporting countries, limit oil production and control oil sales in the market, the oil supply in the market is in short supply, and as a necessary energy material, the oil supply is insufficient, which can further raise the unit price of oil; On the contrary, if oil is produced without restraint, it will lead to the situation that oil supply exceeds demand in the market. When people don't need such a large amount of oil, the price of oil will fall immediately because no one cares, which greatly harms the interests of oil exporting countries, which is why the Organization of Petroleum Exporting Countries wants to limit oil production.

On the contrary, some people say that bad weather is not good for farmers. Because agriculture is going to fail. But some people say that bad weather is good for farmers. Because food prices will rise and income will increase after agricultural failure.

5. No, we should also consider the investment of capital and production factors.

6. The closure of manufacturers is not caused by fixed costs, but depends on the comparison between prices and average variable costs. When the manufacturer decides the output according to the profit maximization principle P=SMC, if the price is lower than the average variable cost, the total income of the manufacturer can not only make up for the fixed cost, but even part of the variable cost, then the loss of the manufacturer is equal to all the fixed cost plus part of the variable cost. In the short term, even if the manufacturer does not produce, its biggest loss is its total fixed cost. This means that when the price is lower than the average variable cost, production is worse than no production, so the best choice for manufacturers is to close down. When the manufacturer decides the output according to the profit maximization principle P=SMC, if the price is equal to the average variable cost, that is, P=SMC=AVCmin, then the total loss of the manufacturer is exactly equal to the total fixed cost. Therefore, the result of production and non-production is the same, and manufacturers can choose to produce or suspend business. When the manufacturer decides the output according to the profit maximization principle, P=SMC, if the price is higher than the average variable cost, then the manufacturer's total income will not only make up for the total fixed cost, but also make up for part of the variable cost. Therefore, even if the enterprise loses money, its loss is still less than the loss when it goes bankrupt. At this time, even if the manufacturer loses money, it will choose production instead of closing down.

7. Just like you can eat four steamed buns, the utility of each steamed bun is one quarter.

But now there are only three steamed buns, so the utility of each steamed bun becomes one third.

8. First, because perfect competition itself assumes that consumers have complete information or knowledge and products on the market are indistinguishable, manufacturers do not need to advertise, which will only increase the cost of products and reduce profits or even losses. Second, a perfectly competitive manufacturer is only a price receiver, and can sell any number of products he wants to produce at the price determined by the market, so the manufacturer does not advertise.

9. There are generally three situations. First, the market is not perfect. When there is no market

When there is competition, information is not smooth, or it is divided for various reasons, monopolists can take advantage of this.

Point to implement price discrimination. Second, the elasticity of demand for the same commodity varies from market to market. At this time, the monopolist can

In order to obtain monopoly profits, high prices are imposed on markets with low demand elasticity. Third, effectively put different cities

Separate between fields or between different parts of the market. Obstacles to regional blockades and restrictions on trade freedom usually include

It is beneficial for monopolists to implement their price discrimination. Therefore, the anti-monopoly maximum price discrimination should try its best to eliminate its realization.

Environmental conditions.