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2 years ago

What therm decribes using tesources to produce the maximum amount of goods and services?

Business

1 answer:

Sergio039 [100]2 years ago

7 0

Economic efficiency describes utilizing resources to construct the maximum amount of goods and services.

<h3>What is Economic efficiency?</h3>

In order to serve each person or entity in the best possible manner while minimizing waste and inefficiency, economic efficiency implies an economic state. Any adjustments made to benefit one entity would hurt another in an economically effective economy.

A balance between benefits and costs is a sign of economic efficiency. Example: A farmer wishes to sell a portion of his property. The person who will pay the highest price for the land uses the resource more effectively than the person who will not pay the highest price.

The best use of resources for each individual in that economic situation is referred to as economic efficiency. Although there is no predetermined cutoff point that establishes the viability of an economy, indicators include products that are sold for the least amount of money and labor that produces the most amount of things.

Hence, Economic efficiency describes utilizing resources to construct the maximum amount of goods and services.

To learn more about Economic efficiency refer to:

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You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the 50% margin required on the sho

Lapatulllka [165]

Answer:

The rate of return will be of 20%

Explanation:

These are the follwong steps to calculate the rate of return:

First you need to calculate the inflow of funds from short selling of Microsoft shares

The number of shares by the information reunited is 300

The selling price of each share is $ 30 per share.

Total sale proceeds is 300 shares×$ 30 per share =$9000

Secondly you need to calculate the margin requirement

Margin requirement on short sale 50 %

Total sale proceeds on short sale×50%=$ 4500

Next year we will again buy each share at $ 27

Total outflow of funds will be $ 27*300 shares = $ 8100

With the information calculated above, we are ready then to calculate the net equity after one year

Net equity will be= (9000+4500-8100)= $5400

Finally, we are ready to calculate the Rate of return

If the net equity will be of $5400, the margin amount deposited is $ 4500, and net gain is $900, rate of return is as follows:

Rate of return= (900/4500)×100= 20%

7 0

4 years ago

The model of monopolistic competition characterizes the market for plumbing services in a city. This market is initially in long

Sophie [7]

Answer:

There will zero economic profits in the long run.

Explanation:

Monopolistic competition is a market structure where there is a large number of firms producing differentiated products. There is very low or no restriction on the entry and exit of firms in the market.

The market for plumbing services in a city is a monopolistic competition. An increase in the market demand will cause the price to increase. This will cause an increase in the profits of the existing firms.

In the long run, new firms will enter the market, increasing the market supply. This will cause the price level to decrease till all the firms are having zero economic profits.

3 0

4 years ago

What determines which price the company should choose for its running shoes?

horrorfan [7]

Answer:

the price that can be affordable for every one and it should be by the opinion of the common people and labours

4 0

3 years ago

Meaning of miscellaneous

Llana [10]

Answer:

it means consisting of different items/member that are of different kinds

Explanation:

7 0

3 years ago

Bill’s Bakery has current earnings per share of $3.06. Current book value is $5.00 per share. The appropriate discount rate for

o-na [289]

Answer:

For this case let X represent the earnings per share. And we know that:

$X_0 = 3.06$ represent the earnings per share at year 0

The increasing factor on this case is i = 3.3% = 0.033

So then we can find the earnings per share at year 1 like this:

$X_1 = (1+i) x_o = (1+0.033)*3.06 = 3.16098$

Then we can use the dividen growth model given by the following expression:

$P0 = \frac{X_1}{R-i}$

Where P0 represent the share price and R=12% =0.12 the discount rate and if we replace we got:

$P0 = \frac{3.16098}{0.12-0.033}= 36.3331$

So then the share price for Bill's Bakery on this case would be $ 36.33

Explanation:

For this case let X represent the earnings per share. And we know that:

$X_0 = 3.06$ represent the earnings per share at year 0

The increasing factor on this case is i = 3.3% = 0.033

So then we can find the earnings per share at year 1 like this:

$X_1 = (1+i) x_o = (1+0.033)*3.06 = 3.16098$

Dividend growth model is defined as a valuation model, used to "calculate the fair value of stock, assuming that the dividends grow either at a stable rate in perpetuity or at a different rate during the period at hand".

Then we can use the dividend growth model given by the following expression:

$P0 = \frac{X_1}{R-i}$

Where P0 represent the share price and R=12% =0.12 the discount rate and if we replace we got:

$P0 = \frac{3.16098}{0.12-0.033}= 36.3331$

So then the share price for Bill's Bakery on this case would be $ 36.33

6 0

4 years ago