Arrange the following theories in a chronological order. A. Theory of limit pricing (Bain’s Model) B.…
Tracing the chronological order of the four economic theories based on their standard canonical publications: - D. Walras's theory of general equilibrium: Leon Walras,…
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Arrange the following theories in a chronological order.
A. Theory of limit pricing (Bain’s Model)
B. Logical ordering theory of demand given by J.R. Hicks
C. Cardinal utility theory of demand
D. Walras theory of general equilibrium
Answer and explanation
Correct answer A
Tracing the chronological order of the four economic theories based on their standard canonical publications: - D. Walras's theory of general equilibrium: Leon Walras, 'Elements of Pure Economics' (1874). - C. Cardinal utility theory of demand: Alfred Marshall, 'Principles of Economics' (1890), which systematized the cardinal marginal-utility demand curve. - A. Theory of limit pricing (Bain's Model): Joe S. Bain, 'A Note on Pricing in Monopoly and Oligopoly' (1949) and 'Barriers to New Competition' (1956). - B. Logical ordering theory of demand given by J.R. Hicks: J.R. Hicks, 'A Revision of Demand Theory' (1956), which specifically introduced the 'logical ordering' (weak ordering) theory of demand. Arranging these in chronological order yields D (1874), C (1890), A (1949), B (1956), which matches ('D, C, A, B').
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UGC NET Economics