Answer: A. True
Explanation:
The basic principle associated with the economics is that the goods, products, and services are limited and demand increases considerably to produce them. The resources used for the production also increases considerably. The scarcity principle of economics deals with the limited supply of the goods that is coupled with the increase in demand this results in the mismatch between the demand equilibrium and desired supply.
Answer:
This is an example of marginal analysis, as the decisions made by Raphael are on margin.
Explanation:
The decision of Raphael about pool versus bike time is totally a "how-much decision". It is clear that pool time and bike time can both reduce the time for race. However, the efficiency of pool time is high currently, and hence there is much sense in trying to spend more time in the pool and less on bike. This however makes no sense that all the time is spent in the pool and no time biking. Raphael only intends to alter the number of hours spend on each activity at the margin.
Answer:
<u>The correct answer is C. four pies.</u>
Explanation:
<u>Marginal cost</u> is called the increase in the cost of production that is generated when the quantity produced in one unit increases. It should be remembered that the production cost refers to the money that must be disbursed to produce a service or a good. The aforementioned definition, indicates that the marginal cost is the increase in the cost recorded when an additional unit of a certain good is produced. <u>In other words, the marginal cost reflects the rate of variation of the cost divided by the change in the level of production.</u>
<u>The curve representing the evolution of marginal cost has the shape of a concave parabola, due to the law of diminishing returns.</u>
In the graph, the marginal cost curve has the following values:
- For one pie, it's $ 1.00
- For two pies, the curve decreases and it's $ 0.60
- For three pies, the curve keeps decreasing and it's $ 0.30
- For four pies, the curve begins to increase and it's $0.60
- For five pies, the curve continue increasing and it's $ 1.40
A flower because they are both used to plant more