Answer:
A fruitworm infestation ruins a large number of apple orchards in Washington state.
Explanation:
The fruitworm infestation would reduce supply. The supply curve would shift to the left as a result.
I hope my answer helps you
Answer:
From the information from the remaining part of the question. The factor that would affect the success or failure of Caffè Gustoso is the Cultural factor.
Explanation:
Caffè Gustoso an Italian word meaning "Tasty coffee". This tells us that the firm is in the food and beverage industry.
Each of the countries mentioned are found in different continents having diverse cultures.
Key to their success is to know the culture of these countries as regards to coffee.
<span>When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called?</span><span>
PRODUCER SURPLUSE</span>
Answer:
Allocative inefficiency.
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
In Economics, there are four (4) main factors of production and these are;
I. Land.
II. Labor (working).
III. Capital resources.
IV. Entrepreneurship.
When these aforementioned factors of production are combined effectively and efficiently, they can be used for the manufacturing or production of goods and services to meet the unending requirements or needs of the consumers.
Basically, there are two (2) types of inefficiency associated with the production of goods and services to meet the unending requirements or needs of consumers, these includes;
1. Technical (productive) inefficiency: it occurs when a company or business firm produce goods and services that consumers do not want. This is typically as a result of the incorrect and inefficient allocation of scarce resources by a business firm or entity.
2. Allocative inefficiency: it occurs when a company or business firm do not maximise output from the given inputs such as raw materials, capital, etc. Thus, it arises when businesses fail to increase the level of their production or productivity from a number of given inputs.
Hence, when a business do not maximise output from the given inputs, it is referred to as an allocative inefficiency.
<em>In conclusion, allocative inefficiency typically occurs when the price of a good or service isn't equal to its marginal cost i.e P ≠ MC.</em>
