1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ber [7]
2 years ago
12

Barb's Soccer Ball Company produces 800 soccer balls per week. If the firm used marginal cost pricing to determine soccer ball o

utput, it would produce 600 soccer balls. Consumers do not receive the most desirable quantity of soccer balls from Bib's because:______.
A. Economic losses are occurring.
B. The firm must be earning higher than normal economic profits.
C. The cost of producing the additional 200 soccer balls is less than the amount that consumers are willing to pay for the additional soccer balls.
D. The cost of producing the additional 200 soccer balls is greater than the amount that consumers are willing to pay for the additional soccer balls.
Business
1 answer:
sesenic [268]2 years ago
5 0

Answer:

D. The cost of producing the additional 200 soccer balls is greater than the amount that consumers are willing to pay for the additional soccer balls.

Explanation:

The optimal production is where : Marginal cost of production = Marginal benefit from production.

Marginal cost & marginal benefit refer to additional cost (incurred by producers) & additional benefit (by consumers), associated with the additional production level. Marginal Benefit also reflect the consumers' (buyers') willingness to pay for the additional product. So, it is analogous to demand curve.

  • Soccer balls optimal production level is where : its marginal cost = marginal benefit (price as per demand curve). It implies the production level of 600 soccer balls, as at that level 'marginal cost = marginal benefit = price'.
  • However, it is producing 800 soccer balls. Marginal cost is higher than marginal benefit (price paying willingness) at this production point, of these additional 200 soccer balls.
You might be interested in
What do simple machines accomplish? question 2 options: simple machines keep the total amount of work the same, but make work mo
max2010maxim [7]
Keep the number of work the same but make it easier

8 0
2 years ago
Read 2 more answers
Because of the unlimited liability of all partners, a general partnership most
nalin [4]

Answer:

D. Sole proprietorship

Explanation:

A Sole proprietorship is also referred to as the sole trader. It is the simplest form of business ownership. The business is owned and managed by one person.

Legally, the sole proprietorship is not an independent entity. It means that the business owner is fully liable to the debts and obligations of the business.

4 0
2 years ago
What is behavioral finance? What does behavioral finance have to do with personal and family finance?
Fofino [41]
Behavioral finance combines behavioral and cognitive psychological theory. It is reasoning's why people make irrational financial decisions. It is related to personal and family finance because people can make irrational choices there too!
8 0
2 years ago
Read 2 more answers
Define competition policy​
balu736 [363]

Answer:

Competition policy, public policy aimed at ensuring that competition is not restricted or undermined in ways that are detrimental to the economy and society.

Explanation:

8 0
1 year ago
How long is a baby considered a newborn
aniked [119]
Seconds, minutes, hours, days, weeks, and i'd say roughly 2 and a half months.
5 0
2 years ago
Read 2 more answers
Other questions:
  • A chemical company produces a special industrial chemical that is a blend of three chemical ingredients. The beginning-year cost
    10·1 answer
  • A treasury bond quoted at 107:16 107:18 has a bid price of _______ and an asked price of _____.
    11·1 answer
  • The law sets limts on how late stuents may work on a school night if under what age
    9·2 answers
  • Who receives the benefits and profits from a joint-stock company?
    12·1 answer
  • Making a down payment will _____. Select the best answer from the choices provided. A. decrease the interest rate on a loan B. i
    11·1 answer
  • Mika decides to rent instead of buy because it is the cheapest option over the first 3 years. his move-in costs are one month's
    10·1 answer
  • Clearly establishing responsibilities and assigning all accounting activities to one person is an important principle of interna
    13·1 answer
  • Enfield Industries purchased and consumed 61,000 gallons of direct material that was used in the production of 13,000 finished u
    8·2 answers
  • Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoli
    12·1 answer
  • Thomas is the owner of a landscaping company that caters to a very wealthy clientele. His company has struggled to differentiate
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!