--%>
Assignment Help - homework help

Shapes of marginal-cost and the marginal-benefit curves

Indicate and describe the typical shapes of marginal-cost and the marginal-benefit curves. How are these curves employed to find out the optimal allocation of resources to a specific product? If current output is such that marginal cost exceeds marginal benefit, have to more or fewer resources be allocated to this product?  Describe.

E

Expert

Verified

The marginal benefit curve is downward sloping, MB falls as more of a product is consumed since additional units of a good yield less satisfaction than previous units. The marginal cost curve is upward sloping; MC rise as more of a product is generated since additional units needs the use of increasingly unsuitable resource. The optimal amount of a specific product takes place where MB equals MC. If MC exceeds MB, fewer resources must be allocated to this use. The resources are more valuable in some alternative employ (as reflected in the higher MC) than in this employ (as reflected in the lower MB).

   Related Questions in Finance Basics

  • Q : What is Fed prime goal in setting

    Normal 0 false false

  • Q : Riskiness of portfolio with very low

    What happens to the riskiness of portfolio if assets along with very low correlations (even negative correlations) are combined? How successfully diversification decreases risk based on the degree of correlation among the two variables in questi

    		•
  • Q : What are the Changes in Authorized

    Changes in Authorized Positions (“Schedule 2”): This is a schedule in the Governor’s Budget which reflects staffing changes made following to the adoption of the present year budget and enacted legislation. This planned document modi

    		•
  • Q : Describe the P-E valuation method

    Describe the P/E valuation method. Under what conditions a stock should be valued by using this method?The P/E ratio denotes how much investors are keen to pay for each dollar of a stock's earnings. A high P/E ratio denotes that investors belie

    		•
  • Q : What are Salaries and Wages Supplement

    Salaries and Wages Supplement: The annual publication issued in a while after the Governor's Budget, including a summary of all positions by department, unit, and categorization for the past, present, and budget years, as of July 1 of the present year

    		•
  • Q : Explain Merit Salary Adjustment Merit

    Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper sala

    		•
  • Q : Explain Budget Bill Budget Bill : The

    Budget Bill: The legislation symbolizing the Governor’s proposal for spending authorization for the subsequent fiscal year. The Budget Bill is all set by the Department of Finance and submitted to each house of the Legislature i

    		•
  • Q : Describe the primary variables in EOQ

    Describe the primary variables being balanced in the EOQ inventory model? Clarify In the EOQ model the primary variables being balanced are carrying costs and ordering costs. The more frequent orders are placed the lower the firm's carrying co

    		•
  • Q : Define the term Judgments Judgments :

    Judgments: It is generally refers to decisions made by courts against the state. The payment of judgments is subject to a range of controls and procedures.

    		•
  • Q : What is Department Department: The

    Department: The governmental organization, generally belonging to the third level of the state organizational hierarchy as stated in the Uniform Codes Manual.

    		•