Business, 28.01.2020 07:31 ninilizovtskt

Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good. this economy:
a. should not change its production because it cannot improve its allocation by shifting resources.
b. can improve its allocation by lowering the unemployment rate.
c. can improve its allocation by producing more of one good and less of the other.
d. can improve its allocation by producing more of both goods.

Answers: 3

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Answer from: owoeli

The correct answer is option c.

Explanation:

Production possibilities curve the maximum possible bundles of two goods that an economy can produce using the limited resources and state of technology.

The points on the production possibilities frontier show efficient bundles. The economy needs to reduce the production of one good in order to increase the production of the other because of the scarcity of resources.

If an economy is not producing at the point where marginal benefit and marginal cost are equal then it should reduce the production of a good and increase the production of another good to improve allocative efficiency.

Answer from: Quest

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

Answer from: Quest

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return

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