Answer:
Option (E) is correct.
Explanation:
Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.
Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.
Answer:
The income statement
Explanation:
The income statement is the document prepared accountants showing the earning of a company at the end of a financial year. The income statement is the profit and loss statement. It tells the business owners and other stakeholders how much profits the business has made. The income statement communicates vital information regarding business performance, such as total revenues, gross profits, and net expenses.
The income statement does not give all the business the information. Accountants will also prepare the balance sheet. A balance sheet shows the assets and liabilities of the business.
A cash flow statement is also prepared. It shows how much cash is available to pay bills, salaries, and debts.
On a spreadsheet there are two types of variables independent and dependent. Independent variables refer to those that can be changed and their value that is changing. A dependent variable is something that remains the same and the value of it does not change.
Answer: continuous production process
Explanation: In simple words, it refers to a production process in which the organisation has to keep doing the production due to the potential loss of of degradation of the raw materials or any other such factors.
In the given case, the company is able to produce efficiently only if they produce in large quantities.
Hence they should indulge in continuous production process.
