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3 years ago

How does specialization benefit both producers and consumors in a free market economy?

1 answer:

7 0

<span>Through specialization, both producers and consumers benefit. On the producer side, specialization allows producers to best use their resources in the most efficient manner possible by playing to their strengths, thus maximizing profit. On the consumer side, the fact that producers are specialized and thus efficient in their production ensures lower production costs than if products were made by less-specialized producers, translating into lower consumer-facing prices.</span>

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Consider the supply curve for basketballs. Other things held constant, if the price of basketballs goes up from $7. 99 to $14. 9

Tanzania [10]

There will be an increase in quantity supplied. (The Law of Supply)

A key tenet of economic theory is the rule of supply, which asserts that a rise in price will result in an increase in the quantity provided, all other things being equal. In other words, there is a direct correlation between price and quantity, and quantities react to price changes in the same way.'

<h3><u>What is a case of the law of supply?</u></h3>

For instance, if Apple produces 100 iPhones, then this is the quantity that is sold. The link between pricing and supply is referred to as the "law of supply." Supply also rises in tandem with price growth. In the event that prices decline, so will supply.

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8 0

1 year ago

Baker Corp. is required by a debt agreement to maintain a current ratio of at least 2.5, and Baker's current ratio now is 3. B

Orlov [11]

Answer:

$1.67 Million

Explanation:

Current asset = 15 Million

Current liabiltiy = 15 Million/3

= 5 Million

Let the inventory X can be purchased with short term debt without violation

per current ratio requirement

(15 + x)/5+x = 2.5

15 + x = 12.5 + 2.5x

2.5 = 1.5x

x = $1.67 Million

Therefore, $1.67 Million inventory can Baker purchase without violating its debt agreement if their total current assets equal $15 million

7 0

3 years ago

A(n) ____ model is an outsourcing fee model that charges a variable fee based on the volume of transactions or operations perfor

Svet_ta [14]

A(n) (transection) model is an outsourcing fee model that charges a variable fee based on the volume of transactions or operations performed by the application.(transection

7 0

2 years ago

$60 one year ago. The stock is now worth $70. During the year, the stock paid a dividend of $2.25. What is the total return to G

Nitella [24]

$60 one year ago. The stock is now worth $70. During the year, the stock paid a dividend of $2.25. The total return to George from owning the stock would be 20% (after rounding off the answer to the nearest whole percent).

Total return on share is the summation of dividend and price appreciation.
Since, the dividend = $2.25
Then, to ascertain price appreciation we need to subtract the dividend from the total return on the share.
Price appreciation = $70 - $60 = $10
Total return can be calculated hence.
Total return = $10 + $2.25 = $12.25
Therefore, the total return for George was $12.25.
To round off the answer to the nearest whole percentage:
Total return percent = $12.25/$60 = 20% approximately

Therefore, the total return to George from owning the stock would be 20%.

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8 0

2 years ago

What is an overdraft? A. Not making deposits frequently enough B. Making purchases at too many different retailers C. Going belo

svp [43]

Answer:

D. Spending more money than you have in your account

Explanation:

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn".

5 0

2 years ago

Read 2 more answers