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.
Evaluate and explain the statements: “The market system is a profit-and-loss economy”
Explain how Entrepreneurs are risk-takers?
Describe Spillovers and externalities?
Newspaper item: “Due to lower grain prices, consumers can expect retail prices of choice beef to begin dropping slightly this spring with pork becoming cheaper after midsummer,” the Agriculture Department predicted. “This reflects increasing supply,” the department said. Does the statement use th
Explain the cause of Trade barriers?
One early involvement of Adam Smith to the theory of gains by international trade, although later thoroughly revised and refined through David Ricardo, was the conception of: (1) mercantilism. (2) absolute advantage. (3) comparative a
Drinking at a public water fountain is: (w) a public good because anyone may drink from it. (x) results in a negative externality because others can’t drink from this at similar time. (y) a positive externality because you are benefiting by other’s provisi
Write down the drawbacks of capital budgeting?
Why is it significant that economics is not a laboratory science? What problems may be evolved in deriving and applying economic principles?
Elucidate how to maintain competition?
18,76,764
1953686 Asked
3,689
Active Tutors
1434894
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!