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OLEGan [10]
2 years ago
9

The production possibilities curve below shows the hypothetical relationship between the production of guns (national defense) a

nd butter (social goods) in an economy. Combination Guns Butter A 0 4 B 14 3 C 26 2 D 36 1 E 44 0 Your response should be a number ONLY. What is the marginal opportunity cost of producing the second unit of butter
Business
1 answer:
andre [41]2 years ago
3 0

If we will increase the production of butter from 1 to 2, then the Guns production will decreases from 36 to 26. Thus, marginal opportunity cost of second unit of butter is 10 guns.

<h3>What is marginal opportunity cost?</h3>

The marginal opportunity cost refers to the measurement of the amount of a good that has to be sacrificed for each additional unit of the other good.

It is the cost incurred during the production of a unit or item.

Formula of Marginal opportunity cost =△gain of output △loss of output.

Learn more about the marginal opportunity cost here:-

brainly.com/question/13229870

#SPJ1

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Employees at House of Pancakes pretend that they like their boss even though most of the time they do not. These employees are e
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8 0
2 years ago
A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bottle costs $12, plus a fixed charge of $12
Maksim231197 [3]

Answer:

500 bottles should be ordered at a time.

20 orders should the warehouse place in a year to minimize inventory costs.

Explanation:

The number of bottles which minimizes the warehouse cost is known as the economic order quantity.

Economic Order quantity minimizes both the holding or carrying cost of inventory as well as the ordering cost.

<em>Economic Order quantity = √((2 × Annual demand × cost per order) / Holding cost per unit)</em>

                                          = √((2 × 10,000 × $125) / $10)

                                          = 500 bottles

<em>Number of Order = Total Demand / Economic Order Quantity</em>

                             =  10,000 / 500

                             =  20 orders

Conclusion :

500 bottles should be ordered at a time.

20 orders should the warehouse place in a year to minimize inventory costs.

4 0
3 years ago
A firm in a perfectly competitive industry is currently producing 6,000 units of output and the market equilibrium price for the
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Answer:

30005

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in the first period it will be: TR=P*Q=6000*5=30000

in the second period it will be= TR=P*Q= 6001*5=30005

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