14. Suppose a market is currently producing in an allocatively efficient manner. Using the concepts of marginal utility, marginal cost, and price, explain exactly what that market must be doing and why that makes the outcome allocatively efficient or not.

Q: 2. Table 7-19 The following table shows the cost of producing a good for the only four producers in…

A: Meaning of Producer Behavior: The term producer behavior refers to the situation under which a…

Q: The graph shows the market for shrimp. The government passes a new law that requires producers to…

A:

Q: Question 6

A: Deadweight loss is the inefficient level of production in the economy, which is the difference…

Q: A new French law is forcing industry giants to donate or recycle unsold goods that they would have…

A: Answer 1)  French policy differ from that in the U.S. as there is a new French law which is forcing…

Q: The graph shows the market for shrimp. The government passes a new law that requires producers to…

A: When demand and supply curve intersect then it brings the  market in equilibrium. At equilibrium…

Q: Write a sentence or two defining the following terms in your own words. Give examples of each.…

A: Y. Market equilibrium is where both the demand and supply are equal.

Q: .Explain, four major socio-economic trends that are impacting the food service-industry today?

A: Answer - Four major socio-economic trends that  impacting the food service-industry today are - 1.…

Q: 2. What is the difference between efficient and inefficient level of production?

A: Efficient level of production: Efficient level of production or production efficiency is an economic…

Q: 90 75 50 25 10 Q 200 500 800 In the space below, calculate CS, PS, and TS, assuming this market is…

A:

Q: In the stages of the product life cycle, sales differ, and in turn, profits are similar, and this…

A: Product Life Cycle: It is referred to the time length a product gets introduced to the consumers in…

Q: 1. Markets and competition In a perfectly competitive market, all producers sell goods or services.…

A: Perfect competition is a type of market structure.

Q: Question 4

A: The producer surplus is the area of the triangle above the supply curve at the given price. The…

Q: 1. Markets and competition In a perfectly competitive market, all producers sell goods or services.…

A: There are two major characteristics of the perfectly competitive market:The same goods and services…

Q: Suppose that ABC firm has 100 hours of labor a day used to produce snacks and swimming classes. The…

A: Production Possibility Frontier refers to the combination of two goods that can be produced with the…

Q: 2. An infinite number of sellers exist in this type of market. 3. It is a past expenditure that…

A: Factors of production are the inputs used in the process of production, these can be labor(L),…

Q: m to produce?

A: The above diagram shows the demand curve and the cost curves facing a monopolist.  For a monopolist,…

Q: describe the marginal condition for efficiency.

A: Efficiency: It relates to the optimal production and distribution of scarce resources.

Q: Suppose the United States can produce cattle or corn with a given amount of resources. Below is a…

A: According to the question, given that the PPF curve for the production of the corn and the cattle.…

Q: The prairie dog has always been considered a problem for American cattle ranchers. They dig holes…

A: In business analysis, the production possibility frontier (PPF) is a curve illustrating the varying…

Q: 1.The prairie dog has always been considered a problem for American cattle ranchers. They dig holes…

A: As cattlemen use some of the lands to the fence for dogs for their production. This land could have…

Q: • Refer to fig. 2.1 in the text. 1. Identify the optimal level of production of this good. 2. In…

A: 1. Optimal level of production is determined at the point where, MB=MC Thus, the condition for the…

Q: 4. It is said that the market forces of supply and demand, which determine the equilibrim price and…

A: Answer: The equilibrium price in a market is determined by the forces of demand and supply for a…

Q: c. Review the definition of allocative efficiency in Chapter 12D, Section 12.6 D. If Fernando…

A: Allocative efficient level of production is where market is producing at the most economically…

Q: Question 2

A: In the short run, marginal cost is the supply curve for a firm and the marginal benfit curve is the…

Q: By producing output level Q: MC АТС Q Q2 Quantity Price P.

A: Allocative efficiency shows that the resources are employed in a such a way that maximizes social…

Q: 13. What is the efficient equilibrium in Figure B? a) P=$22, Q=8 b) P=$$16, Q=14 c) P=$12, Q=8 d)…

A: Externality is the cost or benefit that the market transaction brings to the third party. It can be…

Q: 1.    In a competitive market individual firms take as given a.     the level of output they…

A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…

Q: Suppose the market for clean water was initially at equilibrium in Japan. However, the Japanese…

A: The market supply curve of a commodity can shift as a result of a change in technology, government…

Q: 4. What are the three conditions that must exist when there is allocative efficiency? Allocative…

A: Allocative efficiency means when the goods and services in an economy are optimally distributed…

Q: What are the conditions for an efficient market?

A: Efficient market: Productive market is one where the market cost is an unprejudiced gauge of the…

Q: Explain the term resource in economics

A: Resource: - In economics the inputs that are used to produce goods and services known as resources.

Q: 3) What rule do economists follow to determine the quantity that should be produced in order to…

A: 3) Profit maximization is the key feature or characteristic of the firms. Under this problem of…

Q: Profit maximization may not be the goal of a business firm. What other goals might a business…

A: Profit maximization is one of the goal of business.

Q: 3. A farm grows wheat and produces pork. The marginal cost of producing each of these products…

A: Production possibility frontier illustrates the combination of two goods that can be produced using…

Q: Assume corn is sellling for $6.71 per bushel in greenville, MS, and selling $6.68 per bushel in…

A: In a market, when a product is offered in two different markets at different prices, there will be…

Q: 9 Consider the regional supply curve of farmers who produce a particular crop. a. What does the…

A: a. At the time of harvesting, the crop means the supply is available now so the quantity of crops…

Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).