--%>

Describe utilization of production limits

Describe utilization of production limits in practice to raise the prices of the following goods or services (1) drinks in a restaurant or bar, (2) wheat or corn?

State authorities typically regulate the number of liquor licenses. Requiring that any bar or restaurant which serves alcohol have a liquor license and then restricting the number of licenses available, the State limits entry by new bars & restaurants. This limitation lets those establishments that have a license to charge a higher price for alcoholic beverages.
Federal authorities generally regulate the number of acres of wheat or corn in production through creating acreage restricatinn programs that give farmers financial incentives to leave some acreage idle. This decreases supply, driving up the price of wheat or corn.

   Related Questions in Biology

  • Q : What are fossil fuels What are the

    What are the fossil fuels? Describe in detail.

  • Q : Biological molecule which contains the

    Name the biological molecule which contains the genetic information which is transmitted hereditarily and controls the cellular functioning?

  • Q : Microfilaments are made up of which

    Microfilaments are made up of which substance? And also write down the properties of these elements that give motility to cells?

  • Q : Hypothesis-vertebrates evolved from

    Suppose a scientist is testing the hypothesis which vertebrates evolved from echinoderms. Having a research object a lately found protochordate species, what is an illustration of a discovery which would weaken the hypothesis? What is an illustration

  • Q : Describe Capacity Planning Capacity

    Capacity Planning: This is any strategy which is employed to identify the quantity of production needed to satisfy the demand for the services and goods produced by a business. The thought is to balance the buy of resources, the maintenance of product

  • Q : Define Desktop Technology Desktop

    Desktop Technology: It is a natural outgrowth of Internet technology (IT) and diversity. Similar to web-based applications, desktop technology aids meet a particular need among its users whereas utilizing numerous Internet based protocols or technolog

  • Q : Systems Approach Systems Approach

    Systems Approach Modern organization theory is a sophisticated and scientific way of explanting a complex organization. This theory is comparatively

  • Q : Twins Explain the twins? Genetically,

    Explain the twins? Genetically, which are the two types of twins which can be generated?

  • Q : Three ethical issues DetailsYou will

     DetailsYou will draft a memorandum to a specified executive officer that identifies, discusses, and proposes a resolution for each of 3 ethical issues raised in the hypothetical fact pattern. For each issue that you identify your discussion will (1) pr

  • Q : Define MSM Define MSM ? Briefly explain

    Define MSM? Briefly explain it.