51. Answer the question on the basis of the following information: Suppo ways ro
ID: 1143300 • Letter: 5
Question
51. Answer the question on the basis of the following information: Suppo ways roduct A can be produced by employ ing just labor and cap low. Assume the prices of labor and capital are $2 and s3, respectively roduction Techniques: abor Capital IV If the price of product A is $0.50, the firm will realize A. an economic profit of $4. B. an economic profit of $2. C. an economic profit of $6. D. a loss of $3. 52. In a competitive market economy, firms select the least-cost production technique A. such choices will result in full employment of available resources. B. to do so will maximize the firms' profits C. this will prevent new firms from entering the industry D, "dollar voting" by consumers mandates such a choice 53. The market system's answer to the fundamental question "What will be produced? is essentially A. "Goods and services that are profitable." B. "Low-cost goods and services." C. "Goods and services that can be produced using large amounts of capital. D. "Goods and services that possess lasting value." 54. The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially A. "With as much machinery as possible." B. "Using the latest technology." C. "By exploiting labor." D. "In ways that minimize the cost per unit of output." 55. The market system's answer to the fundamental question "Who will get the goods and services?" is essentiallyExplanation / Answer
51.(B) an economic profit of $2
Option IV is most effective in production and there will be a economic profit of $2 is the price of A is fixed @0.50
52. (B) to do so will maximise the firms' profits
Competitive market means there are many buyers and sellers and they have to maintain a certain level of prices so that the competition goes on strongly and they can sustain in the market among others, meanwhile in this process they will see to it that the firms profits are maximum.
53.(B) Low cost goods and services
The aim in the market system is to keep the consumer happy and for this they have to find out ways to produce goods that are cheaper , also these goods should be produced at low cost too so that the companies maximise their profits too in order to sustain.
54 (D) "In ways that minimize the cost of per unit of output"
The prices should not be exhorbitant but at the same time companies should not face loss too. Thus, the goods will be produced in such a way so that cost of output is lowest.
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