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An industrial assembly line

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Q: Which option is an example of capital as a factor of production?
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WHAT IS production decision in managerial economics?

Production decision:A firm needs to answer four basic questions - what to produce, how to produce and how much to produce and for whom to produce.What to produce?A firm will produce according to its perception of the customer demand. It can either produce consumer goods like food, clothing etc. (which are for consumption purpose) or it can produce capital goods like machinery etc. (which are for investment purposes).How to produce?Goods can be produced by certain techniques. Firms have the option of producing goods by labour intensive technique and capital intensive technique. Labour intensive technique is the one in which manual labour is used to produce goods. Capital intensive technique is the one in which machinery like forklift, assembly belts etc. are used to produce goods.How much to produce?A firm has to decide its production capacity and also how much of their good a consumer needs and produce accordingly.For whom to produce?A firm has to decide its target population (i.e. to whom they will serve products and/or services). Example, it will not be viable to produce luxurious goods or middle income or low income group if they can't afford it and produce basic necessity goods for rich class if they don't need it. Therefore, a firm needs to match its produce according to the target population it is serving.


What is difference between opportunity cost curve and production possibility curve?

The opportunity cost curve shows the trade-off between two different choices in terms of the next best alternative that must be given up. It illustrates the potential gains that could be achieved by choosing one option over another.The opportunity cost curve shows the trade-off between two different choices in terms of the next best alternative that must be given up. It illustrates the potential gains that could be achieved by choosing one option over another. On the other hand, the production possibility curve (PPC) represents the various combinations of two goods that can be produced by an economy given its resources and technology. It shows the maximum possible output of one good that can be obtained for a given level of production of the other good, assuming efficient resource allocation. In summary, the opportunity cost curve focuses on the trade-offs between choices, while the production possibility curve focuses on the trade-offs between the production of two goods. If you're looking to save money on your next purchase, be sure to check this discount code I found. You can enter to Win a $1000 Best Buy Gift Card for free.


How could opportunity cost be examined?

Opportunity cost is the cost of the next-best choice available to someone who has to pick between several choices. It is a key concept in economics used to describe "the basic relationship between scarcity and choice". Opportunity cost is examined by selecting one option and then comparing the expected rewards of that option to the rewards of next option. If a company had money to invest in either marketing or production the opportunity cost of one would be the loss of benefit form not picking the other. For example if the company chooses to invest in marketing instead of improving manufacturing (its next best option) which would increased profits $100000 the opportunity cost of the decision is said to be $100000. If the company makes more than $100000 the company has made a good decision. If the increase in marketing does not make $100000 for the company the decision is considered not at as good as the lost opportunity-cost. It would have been more profitable to invest in the option not selected.


How would war affect aggregate demand and what happens to output and the price level?

As war is an unexpected factor that impedes the economic growth of a country, it leaves the aggregate demand with no option but a slope negatively downwards in dicating higher price levels.


Which is more important accounting break-even point or financial break-even point?

The financial breakeven point is a more relevant measure than the accounting breakeven point because the accounting breakeven point does not consider the initial investment in the project. With any investment, one has the option to venture into it, or to take a less risky route and invest (in a bond or a stock that would give them a more guaranteed return). Thus an accounting breakeven, considers all cost, except the opportunity cost of the capital invested in project, and this is something that the financial breakeven considers. Financial breakeven point is the point where NPV is greater than or equal to zero: the point where there is economic value added® (a term trademarked by Stem-Stewart). This is because in calculating the financial breakeven, the formula includes the opportunity cost of capital: the initial investment divided by the timeannuity factor at the discount rate (where the discount rate is the opportunity cost of capital).

Related questions

What is the meaning of the acronym LPO in auto?

LPO = Limited Production Option.


What is an example of a Macro Control Option?

cheese


Why is issuing stock a popular method used to raise capital?

investors cannot earn money, the company does not have to repay capital, paying dividends is not an option


1973 dodge charger production numbers with 440 cid engine option?

check out allpar.com.


How do you find the greatest common factor on the ti-84?

In this example, we will find the greatest common factor of 132 and 500: Press MATH and scroll over to NUM on the top. Scroll down and select option 9, "gcd(". (This stands for greatest common denominator.) Type the first number, followed by a comma, followed by the second number. Then type and ending parenthesis. In this example, you should have: gcd(132,500) Press ENTER. In this example, the answer should be 4.


How do you type an i without the dot?

Option, Shift B or CAPS LOCK look at a capital i and a lowercase i, I i


What is a key factor in option pricing for individual stocks?

There's no single key factor, but several key factors. These areCurrent asset pricestrike pricevolatilityrisk free ratedividend (continuous or discrete)time to maturityThese factors affect the option price. See the related link for actual examples of option pricing in practise


what should i go to audio production school for?

Audio production is a good option to begin with in learning about the music industry. You can gear your experience towards specifically the aspect you are interested in.


Difference between share capital and share warrant?

Share capital is the amount invested by investors in business while share warrant is the option to purchase the shares anytime.


What is a good example of a software option trader?

A good example of a successful Software Option Trader is SoftwareExpress, MerrillEdge, CBOE, and InvestorPlace. Any of these companies can help build a portfolio.


What is the term for the selection of one option over all others?

Why did capital of georgia move from savanah to augusta?


What are the various change case option available on MS Word Explain each one of them with and example?

UPPERCASE.lowercase.Sentence case, where just the first word starts with a capital letter.Title Case, Where Every Word Starts With A Capital Letter.Toggle Case which will reverse the case of each letter.so it would be:tOGGLE cASE WHICH WILL REVERSE THE CASE OF EACH LETTER.