Answer:
The correct option here is A) marginal cost exceeds marginal revenue
Explanation:
When a company is producing more goods and services, it becomes a bad move because at this point company's marginal cost starts exceeding the marginal revenue , which means with each additional units a company is producing it is losing profit on that unit, so it is better for a company to produce less and try to find that level of output where its marginal cost and revenue are equal because at that level, company would be able to make optimal profits.
Answer: All of the above are problem with the plan.
Explanation:
If a Government rapidly increases the money supplied into an economy, it leads to inflation.
This is because as the citizens of a country get more money at a very short interval, they would tend to demand for more items in the market, the increase in demand would directly lead to an increase in price which is an inflation.
Therefore minting extra money may pay the soldiers but negatively affect the economy as price of commodities would increase.
Answer: (i), (iii) and (iv)
Explanation:
PPCo is able to provide the entire needs of the county and and has been in operations for a few years gaining loyal customers and controlling the market. Any company that will want to come in will have to fight them for market dominance and as such will have a smaller market share than PPCo.
As PPCo is meet the demands of everyone in the county, they are most likely experiencing Economies of Scale. This means that they are making more revenue thereby driving total cost down as the fixed costs remain the same but Revenue climbs. This classifies them as a Natural Monopoly because Natural Monopolies experience Economies of Scale and declining average total costs.
Answer: Lack of basic infrastructure
Explanation:
Developing countries refers to the countries that have a low GDP per capita. These countries also rely on agriculture as their main industry.
Another characteristics of developing countries is that they lack basic infrastructure, high rate of unemployment, and high population growth rate.
