All categories

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.

You might be interested in

The fixed cost of a production system is $20,000, and the variable cost per unit product is $17. The product has a revenue of $2

dimaraw [331]

Answer:

Results are below.

Explanation:

Giving the following information:

Fixed costs= $20,000

Unitary variable cost= $17

Selling price= $28 per unit.

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 20,000 / (28 - 17)

Break-even point in units= 1,818 units

<u>Now, the profit for 1,500 units:</u>

Loss= 1,500*11 - 20,000= -$3,500

8 0

3 years ago

In your own understanding, compare and contrast "business markets versus consumer-goods markets."

Anna35 [415]

Answer:

Business markets and consumer-goods markets differ in relation to the consumer and the form of operation. Business markets are formed by companies that provide products or services for other companies to manufacture their final products and services. Consumer goods markets, on the other hand, refer to companies that produce products and services already intended for final consumers.

The difference between them is that in business markets there are some significant advantages that reduce competitiveness, such as the creation of a long-term relationship with the customer, since the impact of buying and selling is greater, which also ensures greater stability business, since companies need constant inputs and services for their production of products and services to sell to the final consumer.

3 0

2 years ago

Fabiola, who lives in mexico city, fills her car with gas, paying 357 pesos for 40.0 l. what is her fuel cost in dollars per gal

77julia77 [94]

Answer:

Fabiola pays 27.0963 dollars for 8.79877 gallons of fuel.

Step-by-step explanation:

We are given that,

Fabiola pays 357 pesos for 40 liters of fuel.

It is required to convert the amount in dollars.

Since, we know that,

1 peso = 0.0759 dollars

So, 357 pesos = 0.0759 × 357 = 27.0963 dollars

Moreover,

1 liter = 0.219969 gallons

So, 40 liters = 0.219969 × 40 = 8.79877 gallons

Thus, we get that,

Fabiola pays 27.0963 dollars for 8.79877 gallons of fuel.

4 0

3 years ago

Read 2 more answers

Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrig

zmey [24]

Answer:

Explanation:

PREPARE COST OF GOODS MANUFACTURED :

Beginning work in process 42000

Raw material consumed

Beginning raw material 38000

Add : raw material purchase 184500

Less : Ending raw material (52700)

Raw material consumed 169800

DIrect labour 42000

Factory overhead

Factory supplies used 16800

Factory utilities 10200

Depreciation factory equipment 16800

Indirect labour 48000

Property taxes 5500

Reent factory equipment 47000

Repairs factory equipment 4500

Total manufacturing overhead 148800

Total manufacturing cost 360600

Less : Ending work in process (52700)

Cost of goods manufactured

INCOME STATEMENT :

Sales revenue 1350000

Cost of goods sold

Beginning finished goods inventory 72550

Cost of goods manufactured 349900

goods available for sale 422450

Less : endin finished goods inventory (68800)

Cost of goods olsld (353650)

Gross profit 996350

Less : advertising expenses (54000)

Less : selling commission (40500)

Less : dep on office equipment (2400)

Less : office suppplies used (1600)

Less : other administrative exp (72000)

Less : Salaries exp (325000) (495500)

Net income 500850

BALANCE SHEET CURRENT SECTION :

ASSETS

Current assets

Cash 260000

Account receivable 275000

Prepaid exp 41250

Inventory

Raw material 52700

Work in process 52700

Finished goods 68800 174200

Total current assets 750450

8 0

3 years ago

What key factor kept the copernican theory from being widely accepted at first?

Amiraneli [1.4K]

The key factor that kept the Copernican is that Roman Catholic Church had decided that earth was the center of the universe and contrary opinions were heresy. The Copernican also proposed that a heliocentric system had decided the the Earth is the center of the universe and all of the contrary opinions regarding this was false.

7 0

3 years ago