--%>
Assignment Help - homework help

Illustrate the Optimal or best product-mix

Illustrate the Optimal or best product-mix and also Law of increasing opportunity costs?

E

Expert

Verified

Optimal or best product-mix:

1. It will be some point on the curve.

2. The exact point depends on society; this is a normative decision.

Law of increasing opportunity costs:

1. The amount of other products that must be foregone to obtain more of any given product is called the opportunity cost.

2. Opportunity costs are measured in real terms rather than money (market prices are not part of the production possibilities model.)

3. The more of a product produced the greater is its (marginal) opportunity cost.

4. For increasing opportunity cost the slope of the production possibilities curve becomes demonstrating as well as steeper.  This constructs the curve as it emerges concave from the origin and bowed out.

   Related Questions in Business Economics

  • Q : Managerial Economics Managerial

    Managerial Economics Meaning and definition Managerial economics general refer to the integration of economy th

    		•
  • Q : Guideline for monetary policy using

    Question: In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables? Answer: <

    		•
  • Q : Opportunity Cost Opportunity Cost :

    Opportunity Cost:Whenever you select a particular alternative, the next best alternative should be given up. For illustration, when you desire to watch cricket highlights in T.V., you should

    		•
  • Q : What are the major provisions of GATT

    What are the major provisions of GATT

    		•
  • Q : Advantage in production of two products

    Explain by giving example of an absolute advantage in production of two products?

    		•
  • Q : Organization identify the reasons for

    identify the reasons for the formation of organizations

    		•
  • Q : Perfectly competitive market and its

    Which of the given is not a characteristic of a perfectly competitive market structure: w) there are a very huge number of firms which are small compared to the market. x) All firms sell the same products. y) There are no restrictions to entry through

    		•
  • Q : Are quantities supplied-demanded equal

    In perfectly competitive market, the market demand curve is given by Qd = 10 − Pd, and the market supply curve is given by Qs = 1.5Ps. a) Prove that the market equilibrium price and

    		•
  • Q : Principle of comparative advantage When

    When Gene can make three pairs of cowboy boots per week or one saddle whereas Roy can make either two pairs of boots or two saddles, Gene will form boots whereas Roy makes saddles according to the: (i) Law of Occam’s Razor. (ii) Principle of comparative advantag

    		•
  • Q : Economic bailout of Spain and Greece

    Question: Conduct an analysis on the following topic and prepare an Executive Summary-style report with supporting exhibits (Insightful Graphs, tables etc. from quality expert analyst references used to write the r

    		•