Changes

AllieT.

AllieT.

1. Efficiency is the act of minimizing the waste of time, money, materials, and effort. To reach the maximum efficiency, you must be able to eliminate all unnecessary opportunity costs.  

1. Efficiency is the act of minimizing the waste of time, money, materials, and effort. To reach the maximum efficiency, you must be able to eliminate all unnecessary opportunity costs.  

I waited in line at the grocery store for 30 minutes which showed a lack of efficiency in the employees.  

I waited in line at the grocery store for 30 minutes which showed a lack of efficiency in the employees.  

5. The basic assumption of the Coase theorem is that in the absence of transaction costs, there would be a more efficient and more profitable economy. Transaction costs drive the cost of  

5. The basic assumption of the Coase theorem is that in the absence of transaction costs, there would be a more efficient and more profitable economy. Transaction costs drive the cost of  

goods up and out of equilibrium which proves the Coase theorem.  

goods up and out of equilibrium which proves the Coase theorem.  

6. When an owner’s marginal revenue exceeds the marginal cost, the owner can sell additional goods. The owner will be able to make more money from the additional goods sold. Marginal revenue is any additional revenue a business earns from selling one more unit.  

6. When an owner’s marginal revenue exceeds the marginal cost, the owner can sell additional goods. The owner will be able to make more money from the additional goods sold. Marginal revenue is any additional revenue a business earns from selling one more unit.  

7. The Coase theorem says that the government is to increase the prosperity of people; however, the government regulations that increase transaction cost actually hinder prosperity rather than increase it. Government should lower transactions costs to increase efficiency and wealth.

7. The Coase theorem says that the government is to increase the prosperity of people; however, the government regulations that increase transaction cost actually hinder prosperity rather than increase it. Government should lower transactions costs to increase efficiency and wealth.