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Luden [163]
3 years ago
13

The idea of efficiency often arises when measuring a society's well-being. There are two kinds of efficiency: productive efficie

ncy and allocative efficiency.
What can the government do to promote allocative efficiency?
a. Impose a minimum of interference in the market, thus enabling the people who are willing to pay the most for a given good or service to obtain it.
b. Take responsibility for distributing resources equally among the rich and the poor, regardless of people's preferences.
c. Allocate all resources to maximize the production of the one product most desired by the society.
d. Allocate resources so that all types of goods and services are produced in the same amount.
Business
1 answer:
olga2289 [7]3 years ago
5 0

Answer:

The correction option is <em>A) Impose a minimum of interference in the market, thus enabling the people who are willing to pay the most for a given good or service to obtain it.</em>

Explanation:

Minimum interference from the government ensures that only those goods are produced and sold which have a general demand in the market. For example, if there is a demand for 1000 tonnes of flour in a city, entrepreneurs will make sure to fulfill this demand.

<em>In other words, the market forces of demand and supply will work freely. </em>

<em />

All other options are wrong and are an example of socialism and communist economic policies that have time and again failed in Eastern Europe, Soviet Union and even China.

Governments are not efficient and the amount of red tape and bureaucracy always means that government involvement can either create shortages or surplus in the market.

In this case, shortages would mean people not have enough flour, or if there is a surplus, the price of flour will fall, having an impact on farmers.

Hence, it is better for the government to maintain a policy of minimum interference.

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What is the name of the process that weighs the alternatives, gathers all necessary information, and can ultimately lead you to
DiKsa [7]
This process is known as decision making.
6 0
3 years ago
Three sisters are interested in forming a business together. They have three initial concerns: How to maximize their benefits fr
blsea [12.9K]

Answer:

Limited liability company

Explanation:

A limited liability company is one that the owners are not personally liable for the business. Rather the company is a legal entity on its own and can be sued legally as a sepearte entity from its owners.

It combines features of a corporation and a partnership or sole proprietorship.

This will be the best type of business given that the business will not be expected to earn for the first two years. The sisters will not be personally liable for any debt incurred.

Also the business will continue even if only one of the sisters remains.

So an LLC is the best option for them.

3 0
3 years ago
A real estate company provides housing services to retired individuals. It basically helps individuals above the age of sixty to
Harrizon [31]

Answer:

The correct answer is the option E: It can charge very high prices.

Explanation:

To begin with, the business presented in the case as a real estate company that provides housing services to retired individuals who typically are above the age of sixty can charge high prices to their customer due to the fact that basically they are looking for the most important service that there is in the market, a house. Moreover, the fact that the company only sales to retired people and therefore it specializes in a niche market indicates that the company is good at what they do an that is why those individuals choose it. Furthermore, the fact that these elderly people go to the organization expecting to find a house with peaceful surroundings generates the fact that they are willing to pay as much as they can to have the best for them  at the very last of their time.

8 0
3 years ago
An opportunity cost is the a. monetary price paid for a good or service. b. cost of finding the lowest price for a product. c. l
Bess [88]

Answer:

The opportunity cost is e. cost of a purchase or decision as measured by what is given up.

Explanation:

The opportunity cost can be defined as the cost of giving up the benefits associated with the next best alternative that is given up. It is also referred to as the loss of potential gain that is given up when one option is chosen over the other.

For example, If you have a choice of working at a company for salary of $10000 per year or starting your own business that is expected to earn $15000 per year, the opportunity cost of choosing to start your own business is the $10000 per year from the job that is given up.

6 0
3 years ago
What organization design aspects of Zara make it so succuccessful ?
Kamila [148]

Answer:

The secret to Zara’s success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay. From the very beginning, Zara found a significant gap in the market that few clothing brands had effectively addressed. This was to keep pace with latest fashion trends, but offer clothing collections that are a combination of high quality and yet, are affordable. The brand keeps a close watch on how fashion is changing and evolving every day across the world. Based on latest styles and trends, it creates new designs and puts them into stores in a week or two. In stark comparison, most other fashion brands would take close to six months to get new designs and collections into the market.

It is through this strategic ability of introducing new collections based on latest trends in a rapid manner that enabled Zara to beat other competitors. It quickly became the people’s favourite brand, especially with those who want to keep up with fashion trends. Founder Amancio Ortega is famously known for his views on clothes as a perishable commodity. According to him, people should love to use and wear clothes for a short while and then they should throw them away, just like yogurt, bread or fish, rather than store them in cupboards.

The media often quotes that the brand produces “freshly baked clothes”, which survive fashion trends for less than a month or two. Zara concentrates on three areas to effectively “bake” its fresh fashions:

Shorter lead times (and more fashionable clothes): Shorter lead times allow Zara to ensure that its stores stock clothes that customers want at that time (e.g. specific spring/ summer or autumn/ winter collections, recent trend that is catching up, sudden popularity of an item worn by a celebrity/ socialite/ actor/ actress, latest collection of a top designer etc.). While many retailers try to forecast what customers might buy months in the future, Zara moves in step with its customers and offers them what they want to buy at a given point in time.

Lower quantities (through scarce supply): By reducing the quantity manufactured for a particular style, Zara not only reduces its exposure to any single product but also creates artificial scarcity. Similar to the principle that applies to all fashion items (and more specifically luxury), the lesser the availability, the more desirable an object becomes. Another benefit of producing lower quantities is that if a style does not generate traction and suffers from poor sales, there is not a high volume to be disposed of. Zara only has two time-bound sales a year rather than constant markdowns, and it discounts a very small proportion of its products, approximately half compared to its competitors, which is a very impressive feat.

More styles: Rather than producing more quantities per style, Zara produces more styles, roughly 12,000 a year. Even if a style sells out very quickly, there are new styles waiting to take up the space. This means more choices and higher chance of getting it right with the consumer.

Zara only allows its designs to remain on the shop floor for three to four weeks. This practice pushes consumers to keep visiting the brand’s stores because if they were just a week late, all the clothes of a particular style or trend would be gone and replaced with a new trend. At the same time, this constant refreshing of the lines and styles carried by its stores also entices customers to visit its shops more frequently.

In the following sections, the key components of Zara’s winning formula in the fashion retailing industry are illustrated.

Explanation:

3 0
2 years ago
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