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Why people will do less of an activity when the marginal costs are greater than the marginal benefits?
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Benefits to society of business activity?
The society benefits from the business activities as people fulfill their needs and wants that are produced by the business organisations/factories and unemployed people find jobs.
Why people are better off not consuming an additional good or service if the marginal cost is greater than the marginal benefit?
because you need to focus on a need not a want and if the thing you want has an aditional cost your spending more money on the want that you could have spent on the need.
Why is marginal cost the key to economic decision?
People make decisions at the margin; they strictly measure whether the incremental benefit from the next unit of allocation is greater or equal to the marginal cost. Since marginal cost is part of the profitability of an action, the cost affects whether the next unit's return is positive or not, so it helps to determine whether that actor takes that action or not.
What is the example for marginal utility?
people can be expected to satisfy their most pressing needs first, marginal utility normally declines with increasing availability of a good or service. A simple example is money. If someone has no money then $100 has a marginal utility of $100 to them, as they can be expected to spend it on the basic necessities of life. If someone already has $100,000, then $100 has very little marginal utility to them, perhaps far less than $100.
How does the marginal product of labor change as more pepople are hird?
As more people are hired, the marginal product of labor decreases because eventually having more and more employees will not make the company more productive.
What is the theory of optimum allocation of resources?
This Theory has been discussed in Public Finance under Dalton's principle of 'Maximum Social Advantage'. Optimum allocation of resources is that point where maximum marginal sacrifice of people is equal to maximum marginal benefits.
Benefits to society of business activity?
The society benefits from the business activities as people fulfill their needs and wants that are produced by the business organisations/factories and unemployed people find jobs.
Why people are better off not consuming an additional good or service if the marginal cost is greater than the marginal benefit?
because you need to focus on a need not a want and if the thing you want has an aditional cost your spending more money on the want that you could have spent on the need.
Secondary economic activity?
An economic activity in which people use raw materials to produce or manufacture new products of greater value.
Why is marginal cost the key to economic decision?
People make decisions at the margin; they strictly measure whether the incremental benefit from the next unit of allocation is greater or equal to the marginal cost. Since marginal cost is part of the profitability of an action, the cost affects whether the next unit's return is positive or not, so it helps to determine whether that actor takes that action or not.
What is the difference between marginal benefits and marginal costs?
The term marginal cost refers to the oppurtunity cost associated with producing one more additional unit of a good. Opportunity cost is a critical concept to economics - it refers to the value of the highest value alternative opportunity. For example, in examining the marginal cost of producing one more bushel of wheat, that number could be expressed as the dollar value of corn or other goods that could be produced in lieu of more wheat. Marginal benefit refers to what people are willing to give up in order to obtain one more unit of a good, while marginal cost refers to the value of what is given up in order to produce that additional unit. Additional units of a good should be produced as long as marginal benefit exceeds marginal cost. It would be inefficient to produce goods when the marginal benefit is less than the marginal cost. Therefore an efficient level of product is achieved when marginal benefit is equal to marginal cost.
How does the marginal product of labor change as more people are hired?
As more people are hired, the marginal product of labor decreases because eventually having more and more employees will not make the company more productive.
Which people are referred to as marginal groups?
Marginal groups are groups of people who are kept away from society. they are kept at borders and are not shown any kind of respect or concern
What is the difference between marginal and bicultural people?
The difference is bicultural people will usually sleep with both people and sloth. And marginal people will only sleep with other people, but there is the occassional slip up with other animals such as snakes, which are opposite of sloths.
Should resources be concentrated in high potential areas and forget the marginal areas?
No, that would not be very equitable to those people living in marginal areas.
What are ten economic benefits of a gold rush?
Greater PopulationMore MoneyMore people spendingMore employmentNew developmentNew transportationMore businessesNew communicationsIncrease in FarmingMulticulturalism
Three benefits to society of business activity?
1) It will generate employment 2) It will contribut to the GDP of the country 3) It will provide services to the people and make them happy
