Society decide its optimal point on the production
How does society decide its optimal point on the production possibilities curve?
Expert
1. Recall that society receives marginal benefits from each additional product consumed, and as long as this marginal benefit is more than the additional cost of the product, it is advantageous to have the additional product.
2. Conversely, if the additional (marginal) cost of obtaining an additional product is more than the additional benefit received, then it is not “worth” it to society to produce the extra unit.
3. Marginal benefits decline as society consumes more and more pizzas.
a. Beyond that, the added benefits would be less than the added cost.
b. At less than 200,000, the added benefits will exceed the added costs, so it makes sense to produce more.
4. Generalization: The optimal production of any item is where its marginal benefit is equal to its marginal cost. As an eg: this ought to come about at 7,000 robots for robots.
Adam Smith’s opinion of an “invisible hand” powerfully implies the meaning that: (w) pursuit of individual self interest must be controlled. (x) most people lose sight of what’s good for society. (y) most peopl
Of the given options, the economist whose theories pivoted least upon the distribution of income and wealth (class conflict) in a capitalist system would have been: (1) Adam Smith. (2) David Ricardo. (3) Karl Marx. (4
How a production possibilities curve is a graphical representation of choices?
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
with the aim of diagrams show the difference between A change in demand and A change in quantity demand
Economic Territory: This refers to the region of a country where there is a free movement of goods, capital and human resources.
True or false? “U.S. exports create a demand for foreign currencies; foreign imports of U.S. goods generate supplies of foreign currencies.” Explain.
Elucidate the growth record of the United States?
Define Direct and inverse relationships?
What do you mean by Supply?
18,76,764
1959224 Asked
3,689
Active Tutors
1453036
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!