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.
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
Illustrate Competition among buyers and sellers is a controlling mechanism?
When the production possibilities frontier in a proficient economy is not growing, raising the output of one good always needs: (i) Increasing the output price for the other good. (ii) Bigger amounts of resources. (iii) Decreasing the output of other
The points on a production possibilities curve communicate to combinations of goods which: (1) Can’t be generated with no technological advances. (2) Utilize all resources fully and efficiently in the production. (3) Can be generated, however use economic capaci
Illustrate the Law of supply?
Explain the statements: The market system provides such a variety of desired goods and services precisely.
Elucidate Participants in international trade of U.S. and World Trade?
What happens to the supply curve when each of these determinants changes?
Can you explain how different government policies with respect to the recycling of aluminum and paper might account for these different market outcomes?
What is the most important source of revenue and the major type of expenditure at the local level?
18,76,764
1923739 Asked
3,689
Active Tutors
1412255
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!