For each of the ideas below, indicate whether it is most closely associated with neoclassical economics ('the accepted sequence') or heterodox economics ('the revised sequence').

1. Neoclassical economics
2. Heterodox economics

____Firms compete through their investments (as opposed to price)

____Prices change rapidly according to supply and demand, with competition ensuring that price reflects minimum average costs of production

____Technological change can cause obsolescence and therefore can be harmful to firms

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

____Price competition between firms is an essential part of the equilibrating process in capitalist economies

____Price competition generally benefits society as a whole

____Some power passes from top management to his/her subordinates because only the subordinates have the specialized knowledge necessary to make informed decisions

____Prices in most markets are administered by the dominant firms in that market

____The general aims of firms reflect the interests of those who make the decisions in the firm - very often the 'Technostructure'

____Consumer sovereignty

____The goals of the firm reflect its owners' desire for maximum profits

____A technological change which makes production cheaper will be adopted by perfectly competitive firms, ultimately leading to lower prices for consumers

____Demand management

____An important role of prices is to ensure sufficient (not maximum) profits so firms can survive and grow through investment

____Price = average revenue according to demand at the quantity where marginal cost = marginal revenue

____Price competition is very often destabilizing, threatening the survival of the firm

____Prices are set in advance of (that is, before) market trading