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I will pay for the following essay Management Environment. The essay is to be 4 pages with three to five sources, with in-text citations and a reference page.This is meant to ensure maximization of pr
I will pay for the following essay Management Environment. The essay is to be 4 pages with three to five sources, with in-text citations and a reference page.
This is meant to ensure maximization of profits and minimization of losses.
Allocative efficiency comes about when firms or industries produce the kind of goods and services that the consumers desire most. A firm allocates resources in the process of production in such a way that the benefits derived from the use of the product are maximized. All the productive processes employed by firms or industries are aimed at utilization of the meager (or limited) resources available to meet the expectations of the consumers. Here, consumer is the centre of focus and everything is designed to meet his/her desires. Bearing this in mind, the firm starts battling with two issues. the marginal cost (m.c.) which is the additional or extra cost incurred by producing an extra unit and the marginal benefit (m.b.) which is the benefit derived from utilizing an additional unit produced. If the additional cost of an additional unit of production is less than the benefit derived from consuming the extra unit of production, then the firm would be advised to extend the scale of production. This is because the benefits outweigh the cost and so the firm has a room to offer more utility.
