Answer:
Allocative inefficiency.
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
In Economics, there are four (4) main factors of production and these are;
I. Land.
II. Labor (working).
III. Capital resources.
IV. Entrepreneurship.
When these aforementioned factors of production are combined effectively and efficiently, they can be used for the manufacturing or production of goods and services to meet the unending requirements or needs of the consumers.
Basically, there are two (2) types of inefficiency associated with the production of goods and services to meet the unending requirements or needs of consumers, these includes;
1. Technical (productive) inefficiency: it occurs when a company or business firm 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.
2. Allocative inefficiency: it occurs when a company or business firm do not maximise output from the given inputs such as raw materials, capital, etc. Thus, it arises when businesses fail to increase the level of their production or productivity from a number of given inputs.
Hence, when a business do not maximise output from the given inputs, it is referred to as an allocative inefficiency.
<em>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.</em>
Answer:
23,750 units
Explanation:
The computation of the break even point in unit sales is shown below
Break even point = (Fixed expenses) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
The variable expense per unit is
= (Sale revenue - fixed expenses - net operating income) ÷ (Number of sales units)
= ($280,000 - $17,000 - $95,000) ÷ ($280,000 ÷ 10 per unit)
= ($280,000 - $17,000 - $95,000) ÷ (28,000 units)
= $6 per uni
And, the fixed expenses is $95,000
Now put these values to the above formula
So, the value would equal to
= ($95,000) ÷ ($10 - $6)
= 23,750 units
Answer:
Annual deposit= $7,930.11
Explanation:
Giving the following information:
FV= $98,000
n= 9 years
i= 0.0775
<u>To calculate the annual deposit, we need to use the following formula:</u>
<u></u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (98,000*0.0775) / [(1.0775^9) - 1]
A= $7,930.11
