Answer:
$100
Explanation:
Total cost if he installs seven systems = $300
Total cost if he installs eight systems = $400
Therefore, the marginal cost of installing 8th system is the difference between the total cost of installing eight systems and the total cost of installing seven systems.
Marginal cost of installing 8th system:
= Total cost of installing 8 systems - Total cost of installing 7 systems
= $400 - $300
= $100
The profit maximization conditions says that the marginal cost must be equal to the marginal revenue.
Hence,
William will install eight systems per day only if the eight customer is willing to pay at least $100.
Answer:
Prices ensure an equal distribution of goods and services among consumers.
Explanation:
The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.
Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.
For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.
Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.
You become broke cause you don't pay your bills on time or car notes that's why the economy is failing
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