Question

Please indicate whether it is heterodox or neoclassical.

1. Price = average revenue according to demand at the quantity where marginal cost = marginal revenue

2. Technological change can cause obsolescence and therefore can be harmful to firms

3. Price competition between firms is an essential part of the equilibrating process in capitalist economies

4. Price competition is very often destabilizing, threatening the survival of the firm

5. Price = average costs (direct and overhead) times (one plus the profit mark-up)

Answer 1

Neoclassical economics in terms of the assumptions of individual rationality, utility maximization, and supply/demand. While pure theory is decreasing as a proportion of economics output, these neoclassical assumptions remain very significant components of mainstream microeconomic and macroeconomic theory.

Heterodox economics refers to schools of economic thought or methodologies that are outside "mainstream economics", often represented by expositors as contrasting with or going beyond neoclassical economics. "Heterodox economics" is an umbrella term used to cover various approaches, schools, or traditions.

Now:

1] Price = average revenue according to demand at the quantity where marginal cost = marginal revenue

Answer = neoclassical

2] Technological change can cause obsolescence and therefore can be harmful to firms

-- Heterodox: Technological advancement never hurts everyone in the setup. Someone is sure benefited.

3] Price competition between firms is an essential part of the equilibrating process in capitalist economic

Neoclassical theory suggests the quantities and prices are self-adjustable. Less government intervention is required to adjust the price and quantity demanded. So this is neoclassical theory

4] Price competition is very often destabilizing threatening the survival of the firm - Neoclassical

5] Price = average costs (direct and overhead) times (one plus the profit mark-up)

Neoclassical: pricing strategy in the neoclassical theory