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3 years ago

What is the term for when businesses produce goods and services that consumers do not want

Business

1 answer:

tino4ka555 [31]3 years ago

4 0

Answer:

Productive (technical) inefficiency.

Explanation:

A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet consumer demand.

This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market.

In Economics, there are two types of inefficiency associated with the production of goods and services, these includes;

1. Allocative inefficiency: it occurs when businesses do not maximise output from the given inputs. Thus, it arises when businesses fail to increase the level of their production or productivity from a number of given inputs.

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.

2. Productive (technical) inefficiency: it occurs when businesses 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.

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Which of the following best describes the concept of elastic demand?

Trava [24]

------------------elasticity of demand measures the sensitivity of the quantity demanded to changes in the price

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3 years ago

Treasurers, Inc., a manufacturer of gift articles, uses a single plantwide rate to allocate indirect costs with machine hours

Gekata [30.6K]

Answer:

predetermined overhead allocation rate is $228 per hour

Explanation:

given data

Estimated over head costs = $8,000,000

Estimated machine hours = 35,000

actual machine hours = 31,000

to find out

predetermined overhead allocation rate

solution

we know that predetermined overhead allocation rate is express as

predetermined overhead allocation rate = $\frac{estimate overhead cost}{estimate machine hour}$

put here value

predetermined overhead allocation rate = $\frac{8000000}{35000}$

predetermined overhead allocation rate = $228.571

so predetermined overhead allocation rate is $228 per hour

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3 years ago

To develop an effective control system, it must be related to the organizational strategy. Yes or no.

Georgia [21]

Answer:

yes

Explanation:

because in order for everything to be organized you need to know how the system is running

8 0

3 years ago

When making contingency estimates, the contractor should Select one: a. estimate the amount to mitigate high impact and probable

coldgirl [10]

Answer:

a. estimate the amount to mitigate high impact and probable issues.

Explanation:

In project management, a contractor can be defined as an individual or organization that temporarily undertakes a project in order to create a unique result, product, and service.

A contingency is an amount of money which is added to the initial or standard cost estimate so as to cover risk exposure and any uncertainty.

When making contingency estimates, the contractor should estimate the amount to mitigate high impact and probable issues.

As a result of uncertainties that are peculiar to everything in life, most especially projects undertaken, it is very important and necessary that the contractor should set aside an amount of money to mitigate or lessen any high impact such as dwindling prices, miscellaneous, faults, repairs and other probable issues that may arise in the process of execution.

6 0

3 years ago

The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending D

alexdok [17]

Answer:

The year-end adjusting entries for the uncollectible accounts will be:

April 13:

Debit Allowance for doubtful accounts $6,530

Credit Accounts receivable $6,530

(To record write-off of accounts receivable - Dean Sheppard)

May 15:

Debit Cash $3,270

Credit Accounts receivable $3,270

(To record collection on account - Dan Pyle)

Debit Allowance for doubtful accounts $5,410

Credit Accounts receivable $5,410

(To record write-off of accounts receivable - Dan Pyle)

July 27:

Debit Accounts receivable $6,530

Credit Allowance for doubtful accounts $6,530

(To re-establish accounts receivable from Dean Sheppard)

Debit Cash $6,530

Credit Accounts receivable $6,530

(To record collection on account - Dean Sheppard)

December 31:

Debit Allowance for doubtful accounts $13,330

Credit Accounts receivable $13,330

(To record write-off of accounts receivable - Miscellaneous)

Explanation:

April 13: Shipway Company wrote-off account of Dean Sheppard, this means there would be a reduction in both allowance for doubtful accounts and accounts receivable.
The receipt on May 15 of $3,270 reduced the accounts receivable but increased cash. However, the write-off of $5,410 caused a reduction in both the allowance account and accounts receivable.
When there was a receipt of $6,530 on July 27, the accounts receivable would be reinstated and then adjusted for the cash receipt.
Lastly, the write-off of the uncollectible accounts from miscellaneous customers were added up to arrive at $13,330.

8 0

3 years ago

What is the term for when businesses produce goods and services that consumers do not want​

What is the term for when businesses produce goods and services that consumers do not want