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3 years ago

When the marginal benefit of an output exceeds the marginal cost?

1 answer:

7 0

Are there options to choice from?

Marginal benefit (MB) corresponds with the demand curve, and the marginal cost (MC) corresponds with the supply curve. The equilibrium point is where the demand curve intersects the supply curve. At this point, MB = MC, and allocative efficiency is met.

When there is allocative efficiency, there is no deadweight loss, and total market surplus is maximized. This means that consumers are paying less than the value they place on the good or service, while producers are charging more than their minimum price.

In order for allocative efficiency to be achieved, production needs to be increased. The demand curve has a negative slope, and the supply curve has a positive slope. So at some point after production is increased, MB will equal MC.

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If implemented, the southern alliance's proposed "subtreasury system" would have eased the farm debt crisis by?

vesna_86 [32]

The sub-treasury plan, the federal government would hold crops in public warehouses and issue loans on their value until they could be profitably sold.

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They were caught between increased costs and falling prices.

<h3>Why did the Grange movement focus on reducing prices that railroads and grain elevators charged? </h3>

Farmers relied on railroads and grain elevators but were forced to pay higher than usual rates.

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1 year ago

How do cellphone companies promote their product?

lord [1]

Answer:

they promote there company by advertising the product making commercial

7 0

3 years ago

Read 2 more answers

The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Yea

Sergio [31]

Answer:

payback period = 4.86 years

Explanation:

given data

cash flows year 1 = $30,000 per year

cash flows year 5 = $35,000 per year

cash flows year 10 = $40,000 per year

investment cost = $150,000

to find out

payback period for this investment

solution

we get here accumulated inflows will be

accumulated inflows year 4 = $30,000 × 4

accumulated inflows year 4 = $120,000

and

accumulated inflows year 5 = $120,000 + $35,000 = $155,000

and Initial investment = $150,000

so payback period will be

payback period = 4 years + (150,000 - 120,000) ÷ 35,000 × 365 days

payback period = 4 years and 313 days

payback period = 4.86 years

3 0

3 years ago

a. Ten years ago today, Excel Corp issued a regular coupon bond that had original maturity of 15 years. The bond pays interest s

Vlad [161]

Answer:

Total $1,271.0564

Explanation:

We have bond of 10 years ago, so the bond is left with 5 years of life

<u>we need to calculate the present value ofthe cuopon payment:</u>

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 50 (1,000 x 5%)

time 10 (5 years 2 payment a year)

rate 0.02 (4% annual divide by 2 to get semiannually)

$50 \times \frac{1-(1+0.02)^{-10} }{0.02} = PV\\$

PV $449.1293

<u>and the present value of the principal</u>

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1000

time 5

rate 0.04

$\frac{1000}{(1 + 0.04)^{5} } = PV$

PV $821.9271

<u>We add both to get the present value ofthe bond</u>

PV c $449.1293

PV m $821.9271

Total $1,271.0564

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3 years ago

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gregori [183]

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3 years ago