--%>
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 : Time Value of Money Problems on a Texas

    TVM Appendix B: Using the TI-83/84  Time Value of Money Problems on a Texas Instruments TI-831 Before you start:  To calculate problems on a TI-83, you have to go into the applications menu, the blue  “APPS” key on the calculator. Several

    		•
  • Q : Explain Transfers Transfers : As

    Transfers: As employed in Schedule 10Rs and fund situation statements, transfers replicate the movement of resources from one fund to the other based on statutory authorization or particular legislative transfer appropriation authority.

    		•
  • Q : Explain Legislative Information System

    Legislative Information System (LIS): An on-line system formed and employed by the Department of Finance to maintain existing information regarding all bills introduced in the Assembly and Senate for the current 2-year session, and fo

    		•
  • Q : Describe depreciation expense Describe

    Describe depreciation expense as it seems on the income statement.  Accounting depreciation is the allocation of asset's primary cost over time. Depreciation cost on an income statement is the amount of the asset=s initial cost allocated to

    		•
  • Q : Label equilibrium price P-equilibrium

    Normal 0 false false

    		•
  • Q : Do mergers result in layoffs Do mergers

    Do mergers result in layoffs?Entire employment in the banking industry in fact has increased slightly over the last ten years. Some mergers do result in layoffs. Though, several banks demolish their staff largely through attrition to ease the tr

    		•
  • Q : What is Fiscal Year Fiscal Year (FY):

    Fiscal Year (FY): Twelve-month periods throughout which income is earned and received, compulsions are incurred, encumbrances are prepared, appropriations are expended, and for which the other fiscal transactions are recorded. In Cali

    		•
  • Q : Investors prospects of growth Why might

    Why might investors overestimate the prospects of growth companies and underestimate value companies?

    		•
  • Q : Formula for the payment required for a

    Normal 0 false false

    		•
  • Q : Define Programs Programs : The

    Programs: The activities of an association grouped on the basis of common objectives. The programs are included of elements that can be further classified into tasks and components.

    		•