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 39 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
YES! Correct, THANKS for helping me on my review

xoxo123

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Nitrogen fluxes in Sycamore Creek, Arizona (data from Grimm 1988). Nitrogen fluxes in Sycamore Creek, Arizona (data from Grimm 1988).
table table
Example of the Table of Drugs and Chemicals. Example of the Table of Drugs and Chemicals.
Standing at the head of the table, apply effleurage to upper trapezius from neck to shoulder using a ... Standing at the head of the table, apply effleurage to upper trapezius from neck to shoulder using a ...
With the arm placed on the table, apply effleurage over the entire upper limb as a reconnecting and ... With the arm placed on the table, apply effleurage over the entire upper limb as a reconnecting and ...
8.The following table contains DNA-sequence information compiled by Marilyn Kozak (1987). The ... 8.The following table contains DNA-sequence information compiled by Marilyn Kozak (1987). The ...
Video: Forming urine ( influencing factors), Forming dilute urine & Forming concentrated urine

For a complete list of videos, visit our video library