<h2>No. "Household production" does not contribute much to the GDP.</h2>
Explanation:
To arrive at the reason, first we need to understand the term "GDP" and "shortcoming"
Shortcoming means failure to meet certain expectations.
GDP: It is the snapshot of the economy which speaks about the production in certain period.
Since the household production does not come under market transaction and since GDP involves only market transaction, household production cannot be considered and thus it is not a serious reason for shortcoming of GDP.
Answer:
If the social cost of an activity exceeds the costs relevant to the decision makers in the activity , there is an external diseconomy . If the benefits of an activity exceed its marginal cost , there is an external economy .
Explanation:
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Explanation:
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Answer:
Explanation:
Reorder point quantity is the level at which an inventory is expected to be restocked , calculated by finding the sum of demand over the lead time and the safety stock days
Daily usage = 800 feet / day
Lead time = 6 days
Desired service level = 95%
Risk level = 1-0.95 =0.05
safety stock at 0.05 = 1800
Reorder point = expected demand in (LT) + safety stock
= (800*6) + 1800
= 4800+1800 = 6600 feet.