Answer:
Option (E) is correct.
Explanation:
Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.
Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.
Answer:
$18,594.10
Explanation:
Insurance company has to pay $10,000 for two year with rate of 5% since market rate remain same in both the bond.
X = PV (PMT, N, I/Y)
X = PV(10000, 2, 5)
X = 18594.1043
X = $18,594.10
Partly this statement is true however this does not implies to all.
In a big company, it;s really the top managers who do all the planning and decision making for the good of the company and then cascade it to the lower level for implementations
Answer:
lower utility will be experienced on the second pizza
Explanation:
Utility is the satisfaction derived from the consumption of a product or a service. The ability of a product or service to satisfy a particular customer need or want determines its utility value.
The intensity of a need determines the level of utility required. An intense need demands for a product with high utility value. Consumers are willing to spend huge amounts to satisfy such needs. Less intense needs result in reduced utility. Consuming a second pizza will not derive much satisfaction as compared to the first one. The customer's need is not as intense as prior to the first consumption.