This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Define marginal benefit. Explain how it is measured and why the data in the table does not enable ... (Read 38 times)

plus1

  • Hero Member
  • *****
  • Posts: 676
on: Jun 29, 2018
Define marginal benefit. Explain how it is measured and why the data in the table does not enable you to calculate Brazil's marginal benefit from food.
 
  What will be an ideal response?

Question 2

Why does the model of perfect competition imply that there will be an efficient allocation of resources among firms?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

atrochim

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 29, 2018
Answer to Question 1

The marginal benefit of a good is the benefit received from consuming one more unit of the good. The marginal benefit of a good or service is measured by the most people are willing to pay for one more unit of it. The data in the table do not provide information on how much people are willing to pay for an additional unit of food. The table has no information on the marginal benefit of food.

Answer to Question 2

The model of perfect competition implies an efficient allocation of resources among firms due to the assumption of profit maximization. In order to maximize profit, a firm must minimize the cost of producing its chosen level of output. This means that the firm must choose a production technology that produces the output it wants at the lowest cost. Also, if all firms pay the same input prices, the marginal revenue product of the last unit of an input hired will be the same in all firms. This occurs because maximizing profit means hiring an input up until the inputs marginal revenue product is equal to its price.


plus1

  • Member
  • Posts: 676
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

skipfourms123

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

A simulated-color map of the surface of Venus as measured by synthetic aperture radar on the Magella A simulated-color map of the surface of Venus as measured by synthetic aperture radar on the Magella
Data from more than 22,000 men over the age of 40, showing the relationship between birth weight and ... Data from more than 22,000 men over the age of 40, showing the relationship between birth weight and ...
A. Open portable massage table on its side. B. Straighten out legs completely and check that leg ... A. Open portable massage table on its side. B. Straighten out legs completely and check that leg ...
A hypothetical grid of data used in synteny testing A hypothetical grid of data used in synteny testing
Injuries That Benefit from Burn Center Care Injuries That Benefit from Burn Center Care
Table salt (NaCl) molecules dissolving in water, resulting in Na+ and Cl– ions surrounded by ... Table salt (NaCl) molecules dissolving in water, resulting in Na+ and Cl– ions surrounded by ...
Video: Digestive System Animation

For a complete list of videos, visit our video library