--%>
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 : Define the ability of goods by wealth

    According to Adam Smith nation's wealth is, not the gold this possesses, but somewhat it’s: (1) number of people. (2) capability to give goods for its people. (3) foreign investments. (4) domestic financial capital. (5) militar

    		•
  • Q : Gross domestic product Question Would

    Question Would "Victory Points" be a measure of player's "GDP"? If not, then how would you calculate a player's GDP?

  • Q : What are the Causes and theories of

    What are the Causes and theories of inflation?

    		•
  • Q : Self-interested motivation to underpin

    Adam Smith’s perception which self-interested motives underpin even charitable activities through apparently selfless people appeared originally into his primary major book that was entitled: (1) Theory of Moral Sentiments [1755]. (2) Leviathan

    		•
  • Q : How do households dispose of their

    How do households dispose of their income?

    		•
  • 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 : Demand often exceeds supply and supply

    “In the corn market, demand often exceeds supply and supply sometimes exceeds demand.” “The price of corn rises and falls in response to changes in supply and demand.” Among these 2 statements used correctly which in the terms “supply&rdq

    		•
  • Q : Advantages rising from division of

    Adam Smith known three advantages rising from divisions of labor which would lead to greater economic wealth that did not include the concept that the division of labor: (w) helps every worker refine specialized skill

    		•
  • Q : Determine the clearest illustration of

    The clearest illustration of economic inefficiency would be: (w) maintaining a warehouse full of pet rocks within hopes such that someday the fad will return. (x) pet rocks being unavailable to people willing to pay a price that exceeds the marginal s

    		•
  • Q : Introduction of the term Risk factor

    Give a brief introduction of the term Risk factor?

    		•