Answer: Allocative efficiency occurs when the<u><em> marginal cost equals the marginal benefit to society</em></u>
Allocative efficiency is a state of the economy in which production stand for individual preferences, every commodity or work is produced up to the state where the last part renders a marginal benefit to individual equal to the marginal cost of producing.
<u><em>Therefore the correct option is (c)</em></u>
You need to know how many hours it took these workers to make the rugs to determine the labor cost.
Patronizing a store means helping it buy going there often, and basically buying things often and consequently giving it money..
Patronizing a little brother means behaving condescendingly towards, a kind of master-slave relationship... One should never do that...
Answer:
Reorder point is 40
Explanation:
Reorder point is the level of inventory which trigger the purchase of new inventory.
The formula for Reorder point is
Annual demand * Leadtime + Safety Stock
Reorder Point = 1040 / 365 * 14 days + 0
= 40.
The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.
