The deadweight loss is $90.6.
<h3>How to calculate the loss?</h3>
The study suggested that the average recipient's valuation of the gift received was approximately 90% of the actual purchase price of the gift.
This means there's a loss of 10% in value constitute the deadweight loss.
Average amount spent on gift = $906
Percentage loss in value = 10% or 0.10
Calculate the deadweight loss -
= Average amount spent on gifts * Percentage loss in value
DWL = $906 * 0.10
The deadweight loss would be $90.6.
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A study by university of minnesota economist, joel waldfogel, estimated the difference in the actual monetary value of gifts received and how much the recipients would have been willing to pay to buy them on their own. the study suggested that the average recipient’s valuation was approximately 90% of the actual purchase price.
Calculate the deadweight loss if the average amount is $906.
<span>If
a competitive firm can sell a ton of steel for $500 a ton and it has an average
variable cost of $400 a ton, and the marginal cost is $600 a ton, the firm
should reduce its output. The reason for the reduction of output is the
marginal cost it will have. The marginal cost exceeds the selling price of the
product which is a bad sign for the company.</span>
The value of item is determined by its utility to the person who is purchasing it. If an item has high utility, then consumers are willing to pay more and will value the product more. If an item has low utility, it will not be very valuable to the person. People value items differently. the old saying that one's man's trash is another's treasure holds true here.
The adoption of interchangeable parts is the statement that directly explains the boost in production of mccormick reaper.
<h3>What is
mccormick reaper?</h3>
The mccormick reaper is a mechanical mechanism that was created by Cyrus McCormick for farmers to harvest crops mechanically.
In conclusion, the adoption of interchangeable parts is the statement that directly explains the boost in production of mccormick reaper.
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The marginal productivity of the first hour of studying is 15%.
<h3><u>
What is Marginal Productivity?</u></h3>
- The additional output, return, or profit generated per unit as a result of benefits from production inputs is referred to as marginal productivity or marginal product.
- Raw materials and labor are examples of inputs. According to the rule of decreasing marginal returns, the marginal productivity will normally decrease as production rises when a production element is improved.
- This indicates that for every extra unit of output produced, the cost advantage often decreases.
- Diminishing marginal productivity is often recognized in its most straightforward form when a single input variable exhibits a drop in input cost.
- For instance, a reduction in labor expenses during the car-manufacturing process would result in slight increases in profitability per vehicle.
Formula for Marginal Productivity = (Qn – Qn-1) / (Ln – Ln-1)
The total product value is divided by the difference in labor to determine the marginal product of labor.
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