Answer:
The economic surplus will decrease by $2.20
Explanation:
$81.40 and $79.20 are <em>marginal </em>cost and benefit, which are the changes to total costs and total benefits due to producing and consuming one additional barrel of oil.
They can be used to calculate <em>change </em>to economic surplus, which is the change to the net economic value received by society, which is given by:
marginal benefit - marginal cost = $79.20 - $81.40 = - $2.20
Answer:
To segregate an organization's resources according to the purpose(s) for which they are to be used.
Explanation:
A fund is a certain amount of money that is set aside for a specific purpose. These types of funds are often invested and managed by professional protfolio managers so that they make gains over time. Example of funds includes pension funds, insurance funds, endowments, and foundations.
For a company formation of funds helps the company segregate their resources so that they can be effectively allocated toeet various business needs.
Answer:
c. fall in the short run, and fall even more in the long run.
Explanation:
The aggregate demand shifts to the left in recession or contractions, in consequence the level of prices falls. For this analysis we consider the shor-run supply curve with a positive slop.
As we know, the economy in the long run tends to equilibrium, where the the production level is fixed and equal to the potential of production of the economy. The initial reduction of prices incentives the consumption in the long run, stabilizing with the long run quantites in a minor level of prices.
In the attached image you can observe the process described previously.
Answer:
D. Pure competition spreads resources between many different
firms.
Explanation:
Pure competition is a market structure with many suppliers and many buyers. All the suppliers sell a homogeneous product. There is intense business competition among the suppliers. Other characteristics of pure competition include
- There are no dominant suppliers.
- There is ease of entry and exit into the market
- Suppliers/firms are price takers.
In pure competition, resources are shared among the many competing firms in the industry, unlike in a monopoly that has only a single supplier. Resources include raw materials and profits.
