Answer:
The correct answer is option c.
Explanation:
The law of increasing oportunity costs means that as we go on substituting production of one good for another the opportunity cost of sacrificing the alternative will go on increasing. That is whythe prodcution possibilty curve is concave and bowed outward.
Because of increasing opportunity costs, there is a limit to specialization of antions in production of a commodity. As they go on producing the goods they specialize in, the opportunity cost of giving up the alternative goes on increasing.
The state of being scarce or in short supply; shortage:
An example is scarcity of rain is drought.
Answer: The correct answer is b).meet the information needs of a company's managers and other users of its financial statements
Explanation: Chart of accounts refers to list of accounts of an organization. It shows at a spot how an organisation receives money and spends money.
Chart of accounts contains Assets, Liabilities, Income, Expenses and Equity.
Answer:
Rest of question:
... equals marginal cost.
Firms will maximize profits at the point where marginal revenue equals marginal cost because producing after this point means that no profits will be made.
As long as the Marginal revenue exceeds marginal cost, there will be profits made because the company is making more than it is spending so they should keep producing. When it gets to a point in production where the marginal revenue equals marginal cost, the company should not produce further than that.
This is because, as earlier mentioned, any further production would result in the marginal cost being larger than the marginal revenue which means that a loss will be made. The company should therefore stop at the point where MR = MC so as not to let MC get larger than MR so that no losses will be made.
