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.
Elucidate redistribution of income?
Question: Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world i
Question: You are given the following data about two firms: FIRM A Quantity 0
Illustrate how Microeconomics looks at specific economic units?
The initial systematic and popular description of capitalism was explained in: (1) Sir Thomas Mun’s England’s Treasure by Foreign Trade. (2) Joseph A. Schumpeter’s Capitalism, Socialism, and Democracy. (3) John Maynard Keynes’
My friend can't succeed to get the answer of this question. Give me solution of this question. From a heterodox perspective, why does destructive price competition drive enterprises to set up market institutions which would abolish price competition?
“Prices are the automatic regulator that tends to keep production and consumption in line with each other.” Explain.
Explain how government might manipulate its expenditures and tax revenues to reduce unemployment?
What are the facts of inflation?
Write down the external factors which influencing the capital structure?
18,76,764
1953789 Asked
3,689
Active Tutors
1444340
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!