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2 years ago

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

Business

1 answer:

tino4ka555 [31]2 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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Any person who knowingly submits false claims to the government is liable for five times the government's damages caused by the

Alina [70]

The statement above is FALSE.
The correct sentence is this: Any person who knowingly submit false claims to the government is liable for THREE TIMES the government damages caused by the violator plus a penalty. This means that the violator will three fold of the damages he causes not five folds.

7 0

2 years ago

A family spends $56,000 a year for living

vovangra [49]

If a family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, the amount that the family need for their annual living expenses after four years is $68,068.35.

<h3>Annual living expenses</h3>

Using this formula

Amount=Amount spent× (1+ rate)^ Number of years

Let plug in the formula

Amount=$56,000× (1+0.05)^4

Amount=$56,000× (1.05)^4

Amount=$68,068.35

Therefore If a family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, the amount that the family need for their annual living expenses after four years is $68,068.35.

Learn more about Annual living expenses here:brainly.com/question/26383826

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8 0

1 year ago

The price of good X increases from $55 to $60, and quantity demanded decreases from 500 to 400. The price of good Y increases fr

nikklg [1K]

Answer:

demand curve for Good X is more elastic than the demand curve for Good Y

Demand for good X is elastic because the coefficient of elasticity is greater than 1.

Demand for good Y is inelastic because the coefficient of elasticity is less than 1.

consumers who buy Good Y are less sensitive to price changes than consumers who buy Good X

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

For good X,

Percentage change in price = $55 / $60 - 1 = | -0.0833| = 8.33%

Percentage change in quantity demanded = 500 / 400 - 1 = 0.25 = 25%

Elasticity of demand = 25% / 8.33% = 3

Demand for good X is elastic because the coefficient of elasticity is greater than 1.

For good Y,

Percentage change in price = $55 / $60 - 1 = | -0.0833| = 8.33%

Percentage change in quantity demanded = 500 / 475 - 1 = 0.0526 = 5.26%

Elasticity of demand = 5.26% / 8.33% = 0.63

Demand for good Y is inelastic because the coefficient of elasticity is less than 1.

consumers who buy Good Y are less sensitive to price changes than consumers who buy Good X

8 0

2 years ago

You just purchased two coins at a price of $790 each. Because one of the coins is more collectible, you believe that its value w

Novosadov [1.4K]

Answer:

$3,233.12

Explanation:

Data given in the question

Purchase value of two coins = $790

First coin rate = 7.3%

Second coin rate = 6.7%

So, after considering the above information, the amount worth in 20 years

= Purchase value of two coins ×(1 + interest rate)^number of years

= $790 × (1 + 0.073)^20

= $790 × 4.0925541961

= $3,233.12

4 0

3 years ago

First national bank charges 11.5 percent compounded monthly on its business loans. first united bank charges 11.7 percent compou

stich3 [128]

APR=11.5% compounded monthly
$EAR=(1+0.115/12)^12-1=0.121259=12.13%$
EAR=12.13%

APR=11.7% compounded semi-annually
$EAR=(1+0.117/2)^2-1=0.12042225=12.04%$
EAR=12.04%

5 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