All categories

2 years ago

________ occurs when production is in accordance with consumer preferences.

Business

1 answer:

Alika [10]2 years ago

7 0

Answer:

The correct answer is Allocative efficiency.

Explanation:

Although there are different evaluation standards for the concept of allocation efficiency, the basic principle states that, in any economic system, the different options in the allocation of resources will produce both "winners" and "losers" in relation to the choice being evaluated. The principles of rational choice theory, individual maximization, utilitarianism and market theory assume, in addition, that the results for both winners and losers can be identified, compared and measured.

From these basic premises, the objective of maximizing the efficiency in the allocation can be defined according to some neutral principle in which some options are considered “objectively better than others”. For example, an economist might say that a change in policy increases the efficiency of allocation, as long as those who benefit from the change (winners) earn more than the losers lose.

------

NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.

You might be interested in

Bank capital can best be described as a. the location of most of the major banks of a country. b. the accumulated amount of rese

LenKa [72]

Answer:

c. funds contributed by shareholder purchasers of a bank's stock plus the accumulated retained earnings.

4 0

3 years ago

Federal antitrust statutes are complex, but the basic goal is straightforward: to prevent a major industry from being so dominat

kicyunya [14]

Answer:

Since it is the supreme Court that has given this decision, there is nothing much an individual congressman can do alone or even a president.

However, since anti trust laws do not cover those which are not trade or Commerce in nature, a congressman can propose to inact new laws that cover Sports related economic activities. Or they can pass a new law to include the sports related financials in the anti trust laws. But this could change the structure and the purpose of anti trust laws.

Explanation:

6 0

2 years ago

In 2008, the required reserve ratio for a bank's first $9.3 million in checking account deposits was zero. It was 3 percent o

Greeley [361]

Answer:

In most cases the deposits have a reserve ratio of 10% but in some cases the ratio is 0% and 3%, both these numbers are lower than 10. This means that in most cases the ratio is 10% and in some cases the ratio is less than 10 % so the real word deposit multiplier will be less than 10.

Explanation:

8 0

3 years ago

XYZ Corporation uses the FIFO method in its process costing system. The Assembly Department started the month with 1,000 units i

Georgia [21]

Answer: 61,200 units

Explanation:

Using the FIFO method:

= Equivalent units for beginning WIP + Units started and finished + EUP Ending WIP

Units started and finished = 65,000 additional units - 10,000 closing WIP

= 55,000 units

80% of the beginning WIP had been completed in the previous month so only 20% remains.

EUP Conversion = (1,000 * 20%) + 55,000 + (10,000 * 60%)

= 61,200 units

5 0

2 years ago

Assume that marginal revenue equals rising marginal cost at 100 units of output.

Digiron [165]

Answer:

b) -$700.

Explanation:

The economic profit or loss will be:

economic result = revenue - total cost

<u>Where:</u>

fixed cost + variable cost = total cost

400 + 600 = 1,000

revenue = units x selling price per unit

100 units x $3 = $300

economic result = revenue - total cost = 300 - 1,000 = -700

The company is on the optimal level, marginal revenue = marginal cost at 100 units of output.

But, it is not selling at the correct price. It should sale at a higher price.

5 0

2 years ago