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3 years ago

what occurs when the free market is not able to allocate resources and goods and services efficiently

Business

1 answer:

lutik1710 [3]3 years ago

6 0

Answer: Market failure

Explanation:

When the free market is not able to allocate resources and goods and services efficiently, this situation is referred to as market failure.

Market failure brings about disequilibrium in the market as the quantity supplied and the quantity demanded aren't in equilibrium anymore as there's market distortion. It takes place when the quantity of good. The distortion may be as a result of monopoly power.

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Define the word buffer in entrepreneurship ( business ) form .

Fantom [35]

Answer:

a means or device used as a cushion against the shock of fluctuations in business or financial activity

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3 years ago

Three critical activities occur during group socialization that affect the productivity of teams, and they are:

Taya2010 [7]

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3 years ago

Anne has chosen how many bagels and how many units of cream cheese she would buy this month. She has $20 to spend on these two g

Colt1911 [192]

Answer:

The correct answer is: her marginal benefit per dollar for bagels will decrease, and her marginal benefit per dollar for cream cheese will increase.

Explanation:

Anne has $20 to spend on two goods bagels and cream cheese.

The marginal benefit per dollar for bagels is $6.

The marginal benefit per dollar for cream cheese is $10.

If she decides to buy more bagels and less cream cheese, the marginal benefit per dollar for bagels will decrease and marginal benefit per dollar for cream cheese will increase.

The marginal benefit per dollar for a commodity is the ratio of marginal utility derived from consuming the last unit of the commodity upon price of the commodity.

As more and more quantity of a commodity is consumed the marginal benefit per dollar for it will go on declining. This is because the marginal utility derived from each additional unit will go on declining while price will remain the same. The less the commodity is consumed, the marginal benefit per dollar for it will increase.

5 0

3 years ago

When firms exit a market, the _________, causing individual firms’ profits to _________.

Tpy6a [65]

Answer:

When firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.

Explanation:

The process of free entry and exit of firms is in a sequence as explained under-

If there is higher demand in the market of the product as compared to its supply, then each firm in the market will receive higher price for its product.
This will increase the prices of the product, enabling higher profits for each firm. This will make the industry attractive, enabling the introduction of newer firms in the market.
When the new firms enter the industry, the prices of the product in the market will drop due to higher competition, now present currently. This will lead to lowering of profits for the firms in the industry.
This will make the industry non-attractive and thereby the less competitive and less effective firms will exit the market in the short run.
This exit of firms from the industry, will lead to higher prices again due to less supply of product in the market as compared to its demand. Hence, the profits of the firms present in the industry will increase.

Thus, it can be concluded that when firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.

4 0

3 years ago

Read 2 more answers

The following table presents Generic Motors Company's production budget. GM's inventory policy is to have ending inventory equal

Irina18 [472]

Answer:

________________________________February__March__April

Ending inventory 20% of next Months sale _3400___3600__5,000

Beginning inventory__________________ 2,000__ 3400__ 3600

Budgeted sales _____________________ 13,000__17,000_ 18,000

Budgeted production_________________ 14,400__ 17,200_ 19,400

Firms wants to hold the finished goods inventry in order to deal with the future demand

Explanation:

Use the following formula to calculate the Budgeted production

Budgeted Production = Beginning Inventory - Ending Inventory + Busgeted Sales

Working

________________________________February__March__April

Ending inventory 20% of next Months sale _3400___3600__5,000

Less: Beginning inventory______________2,000__ 3400__ 3600

Add: Budgeted sales _________________ 13,000__17,000_ 18,000

= Budgeted production________________14,400__ 17,200_ 19,400

The finished goods inventory is held to deal with the future market demand. If the firm produce the uniits equals o the current demand then in case of increase in demand or unexpected demand increase the firms will not be able to fulfil the demand and will lose the opportunity.

6 0

2 years ago

what occurs when the free market is not able to allocate resources and goods and services efficiently​

what occurs when the free market is not able to allocate resources and goods and services efficiently