--%>
Assignment Help - homework help

Shapes of marginal-cost and the marginal-benefit curves

Indicate and describe the typical shapes of marginal-cost and the marginal-benefit curves. How are these curves employed to find out the optimal allocation of resources to a specific product? If current output is such that marginal cost exceeds marginal benefit, have to more or fewer resources be allocated to this product?  Describe.

E

Expert

Verified

The marginal benefit curve is downward sloping, MB falls as more of a product is consumed since additional units of a good yield less satisfaction than previous units. The marginal cost curve is upward sloping; MC rise as more of a product is generated since additional units needs the use of increasingly unsuitable resource. The optimal amount of a specific product takes place where MB equals MC. If MC exceeds MB, fewer resources must be allocated to this use. The resources are more valuable in some alternative employ (as reflected in the higher MC) than in this employ (as reflected in the lower MB).

   Related Questions in Finance Basics

  • Q : What is Pooled Money Investment Account

    Pooled Money Investment Account (PMIA) It is a State Treasurer's Office accountability account maintains by State Controller's Office to account for short-term investments procured by the State Treasurer's Office as designated by the Pooled Money Inve

    		•
  • Q : Production possibilities curve based

    Given is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Illustrates these data graphica

    		•
  • Q : Example-implicitly-weighed marginal

    Cite three example of recent decisions which you made in which you, at least implicitly, weighed marginal costs & marginal benefits.

    		•
  • Q : What are A-pages A-pages : An ordinary

    A-pages: An ordinary reference to the Governor's Budget synopsis. The Budget highlights now contained in the Governor's Budget synopsis were just once contained in front of the Governor's Budget on pages A-1, A-2, and so on, and were,

    		•
  • Q : Define Allocation Allocation : The

    Allocation: The distribution of funds or costs from one account or misuse to one or more accounts or appropriations (example, the allocation of employee compensation funding from the statewide 9800 Budget Act items to the departmental Budget Act items

    		•
  • Q : Define Financial Planning Financial

    Financial Planning: It is a comprehensive assessment of an investor's present and future financial state by employing presently known variables to forecast future cash flows, asset values and the withdrawal plans.

  • Q : Assignments i want to write final

    i want to write final report about my state Texas. using the resources that i attached and the other resources to cover the outlines.

    		•
  • Q : Describe depreciation expense Describe

    Describe depreciation expense as it seems on the income statement.  Accounting depreciation is the allocation of asset's primary cost over time. Depreciation cost on an income statement is the amount of the asset=s initial cost allocated to

    		•
  • Q : Calculate the slope of the curve Normal

    Normal 0 false false

  • Q : What is Financial Restructuring

    Financial Restructuring: It is the reorganizing of a business' liabilities and assets. The procedure is frequently related with corporate restructuring where an organization's on the whole structure and its processes are refurbished. Though companies

    		•