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MARGINAL COST AND MARGINAL PRODUCT: Because variable cost is largely associated with the cost of employing a variable input in the short run, it's possible to identify a connection between the marginal cost curve and the marginal product curve. In particular, the quantity of output in which marginal cost is at a minimum, is the same quantity of output produced by the variable input when the marginal product of the variable input is at a maximum. In addition, over the range of production in which the variable input experiences increasing marginal returns and marginal product increases, the marginal cost curve declines. And over the range of production in which the variable input experiences decreasing marginal returns brought on by the law of diminishing marginal returns and marginal product increases, the marginal cost curve is rising.
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                           RESOURCE ALLOCATION: The process of distributing resources for the production of goods and services which are then distributed for the satisfaction of wants and needs and human consumption. This is also commonly referred to by the single word "allocation." The resource allocation process is an essential part of an economy's effort to address the problem of scarcity Given that world is rampant with scarcity (unlimited wants and needs, but limited resources), not every want and need can be satisfied with available resources. Choices have to be made. Some wants and needs are satisfied, some are not. These choices, these decisions are the resource allocation process.EfficiencyAn efficient resource allocation exists if society has achieved the highest possible level of satisfaction of wants and needs from the available resources AND resources cannot be allocated differently to achieve any greater satisfaction.Three QuestionsThis whole resource allocation process is frequently viewed as answering three key questions:- What goods and services are produced with the available resources?
- How are available resources combined in the production of goods and services?
- For Whom are the goods and services produced?
Markets and GovernmentsResource allocation is accomplished through both voluntary market exchanges and involuntary government-imposed actions. Markets accomplish the process using prices, which create incentives for both producers and consumers. Governments address this process using regulations, taxes, and spending, which also create incentives among members of society.Both methods are necessary in a modern economy. Many resource allocation decisions are best made through markets, but some resource allocation decisions are better addressed using the coercive powers of government.
Recommended Citation:RESOURCE ALLOCATION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2026. [Accessed: July 21, 2026].
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Today, you are likely to spend a great deal of time browsing about a thrift store hoping to buy either a toaster oven that has convection cooking or a birthday gift for your mother. Be on the lookout for pencil sharpeners with an attitude.
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In the Middle Ages, pepper was used for bartering, and it was often more valuable and stable in value than gold.
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"When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left, and could say, „I used everything you gave me.¾" -- Erma Bombeck, writer
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ADR
American Depositary Receipt, Asset Depreciation Range
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