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3 years ago

________ occurs when production is in accordance with consumer preferences.

Business

1 answer:

Alika [10]3 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.

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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.

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Cutting costs is the best way to maximize profitability. a. True b. False

wel

The answer is false. There are a lot of ways and best methods of maximizing profitability but cutting cost is not the best method because it will likely minimize the profit because the cost are being cut down. That is why the answer would likely be false because it is not the best method.

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3 years ago

Suppose a firm is producing the profit-maximizing level of output and the MP of capital and labor are 10 and 20, respectively. I

Darya [45]

Answer:

B. Hire more labor and use less capital.

Explanation:

The firm producing at the profit-maximizing level of output means that Marginal Revenue = Marginal Cost, it can also be said that Marginal Productivity = Marginal wage/rent (Factor cost).

Therefore to minimize cost there should be a selection of factor mix that will be more efficient (i.e. comparing the cost of input to output) which will be to use more of the cheaper input and less of the costlier input

Since the cost of labor is $10 and that of capital is $25, compared to the marginal productivity of 10 and 20 respectively, it can be seen that labor is the more efficient resource or factor.

Therefore the cost minimizing choice of inputs will be more of labor and less of capital will minimize costs

4 0

4 years ago

In recent years debit cards have become popular. Debit cards allow the holder of the card to pay a merchant for gods and service

enyata [817]

Answer:

Debit cards are assigned to checking accounts, and since they have become more popular, the amount of currency in the economy has decreased while the amount of checking account deposits has increased.

Explanation:

Actual currency (bills and coins) and checking accounts are part of the M1 category of the money supply, since both are considered completely liquid.

3 0

4 years ago

Larkspur Co. had cost of goods sold of $3,100. If beginning inventory was $3,200 and ending inventory was $1.050. Larkspur's pur

AleksandrR [38]

Answer:

cost of goods purchased= $950

Explanation:

Giving the following information:

Larkspur Co. had cost of goods sold of $3,100.

Beginning inventory was $3,200

Ending inventory was $1,050

To calculate the purchases, we need to use the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

3,100 = 3,200 + cost of goods purchased - 1,050

cost of goods purchased= 950

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4 years ago

Unit Elastic is elasticity where a change in the independent variable (usually price) generates a proportional change of the dep

elixir [45]

Answer:

The statement is true.

Explanation:

Unit elastic is described as the demand or supply curve that is perfectly responsive to the changes in the price. In other words, the demand or the quality supplied will change or vary in accordance with the same percentage as the change in price.

The curve which has elasticity of 1 will be called as unit elastic.

5 0

3 years ago