Illustrate the Optimal or best product-mix
Illustrate the Optimal or best product-mix and also Law of increasing opportunity costs?
Expert
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.
Question: In Vancouver the Salvation Army encourages people to make food voucher donations to panhandlers instead of simply giving them cash. You can buy a food voucher for $5 and give it to a panhandler who can use it to purchase food. The Sa
Describe two kinds of efficiency Full production imply?
Why possession protection of property rights and private property promotes the market system?
How important is international trade to the U.S. economy? In terms of volume, does the United States trade more with industrially advanced economies or with developing economies? What country is the United States’ most important trading partner, quantitati
What happens in the product markets?
In words of Adam Smith, who theorized that the “natural price” of a good based most directly upon the: (1) wage rate and the relative amount of labor required to produce the good. (2) greater of the value of the good &ldqu
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
How does society decide its optimal point on the production possibilities curve?
How is a shift in demand reflected in a demand equation? How is a shift in supply reflected in a supply equation? How is a movement along a demand (supply) curve reflected in a demand (supply) equation?
What persuades new firms to enter in an industry? Answer: Abnormal profit encourages new firms to enter an industry.
18,76,764
1955343 Asked
3,689
Active Tutors
1444843
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!