Distinguish between allocative efficiency and productive
Distinguish between allocative efficiency and productive efficiency. Give an illustration of achieving productive, but not allocative, efficiency?
Expert
Allocative efficiency means that resources are being used to produce the goods and services most wanted by society. The economy is then located at the optimal point on its production possibilities curve where marginal benefit equals marginal cost for each good. Productive efficiency means the least costly production techniques are being used to produce wanted goods and services. Example: manual typewriters produced using the least-cost techniques but for which there is no demand.
Give a brief introduction of the term Control Factor?
If one decisionmaker in interdependent circumstances calibrates its decisions to the anticipated reactions of the other party, in that case the decisionmaker is engaged within: (1) psychological forecasting. (2) profit maximization. (3) collusion. (4) strategic behavi
What are the 4 phases of the business cycle?
What persuades new firms to enter in an industry? Answer: Abnormal profit encourages new firms to enter an industry.
Elucidate Reliance on technology and capital goods of the market system?
Illustrate Scarcity and choice of Economic Perspective?
Relative to most of the other countries, the United States encompasses historically relied more greatly on: (1) Public resource ownership and private income distribution. (2) Decentralized decision making and private resource ownership. (3) Exports of textiles, automo
Industries that are described as "contestable": (w) will experience long-run economic profits equal to zero. (x) are difficult for firms to enter, but not to exit. (y) are difficult for firms to exit, but not to enter. (z) will charge prices greater t
Mutually beneficial exchange is probable whenever relative production costs vary previous to trade, is a manner to state the law of: (1) Positive profits from trade. (2) Comparative benefit. (3) Specialization and Division. (4) Purchasing power parity
Illustrate and clarify the economizing problem?
18,76,764
1947916 Asked
3,689
Active Tutors
1444893
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!