Answer:
c. can improve its allocation by producing more of one good and less of the other.
Explanation:
Production possibility curve shows all the combinations not two products that can be produced by an economy with a given level of resources. When more of one good is produced, less of the other is produced.
When the marginal benefit of the goods are not equal to the marginal cost, the economy can find a balance where the benefits of producing bother goods exceeds their cost.
This can be done by producing more of one good and less of the other.
Your answer is Cost-Push.
Cost push inflation – this occurs when there is a rise in the price of raw materials, higher taxes, e.t.c
Answer:
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Explanation:
Explanation:
Over the past several decades, advances in technology, greatly reduced the cost of making computers which resulted in the decline of the equilibrium price of computers and also resulted in increased equilibrium quantity. The reduction in the computer prices also caused an increase in the consumer surplus.
computer price down -> equilibrium price down
computer price down -> equilibrium quantity up
computer price down -> consumer surplus up
The producer surplus increases due to increase in quantity and at the same time producer surplus decreases due to decrease in price.
computer price down -> producer surplus down
computer quantity up -> producer surplus up
Answer:
The annual financial disadvantage is $62,560
Explanation:
<u>Analysis of the Costs of Producing Internally and Buying from External Supplier.</u>
Producing Internally External Supplier
Direct materials $3.50 $0
Direct labor $8.10 $0
Variable manufacturing overhead $8.60 $0
Supervisor's salary $4.00 $0
Depreciation of special equipment $2.40 $0
Allocated general overhead $7.60 $7.60
Extra contribution $0 ($2.19)
Purchases Cost $0 $32.70
Product Cost $34.20 $38.11
<u>Conclusion :</u>
We can see that the Product Cost to produce the part internally costs $3.91 less than the cost to purchase from external supplier. Therefore Sewtfi861 Corp has a disadvantage.
Annual disadvantage = 16,000 units × $3.91
= $62,560
