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3 years ago

Business do not maximise output from the given inputs

Business

1 answer:

Ganezh [65]3 years ago

4 0

Answer:

Allocative inefficiency.

Explanation:

Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.

In Economics, there are four (4) main factors of production and these are;

I. Land.

II. Labor (working).

III. Capital resources.

IV. Entrepreneurship.

When these aforementioned factors of production are combined effectively and efficiently, they can be used for the manufacturing or production of goods and services to meet the unending requirements or needs of the consumers.

Basically, there are two (2) types of inefficiency associated with the production of goods and services to meet the unending requirements or needs of consumers, these includes;

1. Technical (productive) inefficiency: it occurs when a company or business firm produce goods and services that consumers do not want. This is typically as a result of the incorrect and inefficient allocation of scarce resources by a business firm or entity.

2. Allocative inefficiency: it occurs when a company or business firm do not maximise output from the given inputs such as raw materials, capital, etc. Thus, it arises when businesses fail to increase the level of their production or productivity from a number of given inputs.

Hence, when a business do not maximise output from the given inputs, it is referred to as an allocative inefficiency.

<em>In conclusion, allocative inefficiency typically occurs when the price of a good or service isn't equal to its marginal cost i.e P ≠ MC.</em>

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The price of ice cream increases. In 1 or 2 sentences, explain how and why this affects the quantity of ice cream cones demanded

Ivan

As the price of ice cream increases, so the demand by consumers may decrease, decreasing the quantity of ice cream cones demanded (provided that all consumers eat ice cream with a cone!)

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3 years ago

Read 2 more answers

What is the most common method of measuring flows of trade?

kakasveta [241]

The most common method to measure flows of trade is the comparison between the exportation of merchandise, services, and the capital of the countries.

<h3>What is trade?</h3>

Trade is the situation where the countries buy (import) from or sell (export) to the countries outside the boundaries of their own territories.

Exports referred to the scenario where one country provides goods and services to another country abroad. The comparison of goods, services, and monetary capital of foreign countries with respect to their own countries can be used as a common method to measure the trade flows.

Therefore, the exporting of goods, services, and capital to other countries is the method to determine trade flows.

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1 year ago

Louis owns an import business. After traveling to France on numerous occasions, he developed a taste for fine French wines. A ra

Tamiku [17]

Answer:

B. French wines will become more expensive in the United States.

Explanation:

Exchange rate is the rate at which one currency can be exchanged for another during international trade. The strength of a currency determines how much of the other countrie's goods it can purchase.

When the strength of a countrie's currency is high it will purchase more of the other countrie's goods. If however the currency is weak, it will take more to buy the other countrie's goods.

In this case if the dollar falls against the euro, it will take more dollars to buy French wine than before.

For example if a bottle of French wine was $500, after the fall the price may now be $800.

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3 years ago

tAn employee has a claim on the cash flows of Martin’s Machines. This claim is defined as a claim by one of the firm's:

kap26 [50]

Complete Question:

An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's:

Group of answer choices

A. residual owners.

B. shareholders.

C. financiers.

D. provisional partners.

E. stakeholders.

Answer:

E. stakeholders.

Explanation:

An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's stakeholders.

A stakeholder can be defined as an individual or group of people that has an interest or concern in a business firm and usually either affect or be affected by the business.

Generally, the key stakeholders of business firm are its employees, public groups, suppliers, investors, creditors, consumers or customers. The employees working in an organization are key internal stakeholders because they play a significant role, function and have both financial and time-based investments in the operations of the business.

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3 years ago

Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In o

Zigmanuir [339]

Answer:

The scientist are looking to offer shares of stock to general public to raise some funds.

Explanation:

The seed scientist are looking to offer shares of stock of their company to genera public to raise some funds , so that they can expand the distribution of their product . Arborview plant science company will first time offer their shares to the public, so this process is called initial public offering and by doing this they will get funds from investor in return for part of ownership in the company.

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3 years ago

Business do not maximise output from the given inputs​

Business do not maximise output from the given inputs