Business, 06.04.2020 23:18 lj2754

What is allocative efficiency?

A. It refers to a situation in which resources are allocated such the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it.

B. It refers to a situation in which resources are allocated to their highest profit use.

C. It refers to a situation in which resources are allocated fairly to all consumers in a society.

D. It refers to a situation in which resources are allocated such that goods can be produced at their lowest possible average cost.

Answers: 1

Show answers

Answers

Allocative efficiency is the situation whereby resources are allocated in such a way that the last unit of output that is produced provides a marginal benefit to consumers that is equal to the marginal cost of producing the product. (A)

Explanation:

Allocative efficiency is when production represents the preferences of consumer as every product is produced at the point where the last unit gives a marginal benefit to consumers that is equal to the marginal cost used in producing the product.

Allocative efficiency is the level of output that is achieved when the price of a good or service equates to the marginal cost of production. Allocative efficiency can be achieved when there is an optimal distribution in goods and/or services in response to the demand of consumers and when the marginal cost and the marginwl utility of the product or services are equal.

Answer from: Woodlandgirl14

The correct answer is letter "A": It refers to a situation in which resources are allocated such the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it.

Explanation:

In Business, allocative efficiency refers to the state where all goods and services in an economy are distributed equally among buyers and sellers. The same concept can be applied to the manufacturing process. Under such a scenario, allocative efficiency refers to a point in which the last unit produced gives a marginal benefit equals the marginal cost for the end-user. The manufacturing company, then, would be producing an output that consumers are most likely to desire.

Answer from: Quest

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).

Answer from: Quest

You need to give the options.

Another question on Business

Business, 21.06.2019 16:10

Which one of the following is most apt to align management's priorities with shareholders' interests? compensating managers with shares of stock that must be held for a minimum of three years holding corporate and shareholder meetings at high-end resort-type locations preferred by managers increasing the number of paid holidays that long-term employees are entitled to receive allowing employees to retire early with full retirement benefits paying a special management bonus on every fifth year of employment

Answers: 1

Answer

Business, 22.06.2019 04:50

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Answers: 2

Answer

Business, 22.06.2019 06:30

If a team of three workers, each making the u.s. federal minimum wage, produced these 12 rugs, what would the total labor cost be? don't forget that these workers would be working overtime.

Answers: 3

Answer

Business, 22.06.2019 14:00

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.

Answers: 1

Answer

You know the right answer?

What is allocative efficiency?

A. It refers to a situation in which resources are alloca...

Questions