In economics the term “marginal” is best defined as? & In economics the verb “allocate” is best defined as?

In economics the term “marginal” is best defined as:

average or mean.



first or primary.

last or secondary.

In economics the verb “allocate” is best defined as:



keep or save.



Marginal will be best defined as Additional

Allocate = distribute ( setting the right stuff at the right place for example ''allocating resources'' means putting the resources in the right place for their best estimated outcome. well forget it if u r not getting it or if i have been confusing)
I'm guessing we're doing all of your economics homework today. : /

I would say "additional". For things like marginal utility or marginal cost, which each "additional" good you get less satisfaction or cost will increase, respectively.

For allocate I would say "distribute". For example, to distribute resources. You don't produce or keep or accompany the resources you allocate.
Hope this helps. Forget it if you find it confusing. Correct me if I am wrong. Thank you.

Marginal is best defined as "additional" and allocate as "distribute".

In economics, marginal analysis looks at the effects at a margin, or the effects of an additional, extra, or last item being added or removed.

In production theory, we have marginal cost (Cost of producing an additional unity of output), marginal revenue (Revenue derived from selling the last unit of output), marginal physical product (Output produced by the last unit of labour employed).

In consumer theory, we have marginal utility (Additional satisfaction derived from consuming an additional unit of a good). In investment theory, we have marginal efficiency of investment (Rate of return expected from undertaking an additional unit of investment).

In macroeconomics, we have marginal propensity to consume/save/import, namely as MPC, MPS, MPM, i.e. the proportion of the additional dollar of income earned that is spent on consumption/that is saved/that is spent on imports.

In symbols, MPC (or c for short) = change in consumption/change in income; MPS (or s for short) = change in savings/change in income; MPM (or m for short) = change in imports/change in income.

A useful relationship between MPC and MPS is they sum to 1, since saving is the opposite of consumption. Any proportion of the additional dollar of income that is not consumed must be saved.

The open-economy income multiplier, k, succintly conceptualizes in a single formula the MPC (or c), MPM (or m) and an additional variable, t, the tax rate.

k = 1/(1-c+ ct+m)

The economic efficiency of the way resources are allocated or distributed is described by the term "allocative efficiency". Being allocatively efficient means the economy is distributing resources towards the production of goods and services most desired by society as a whole, or where price equals marginal cost, P = MC. It is argued that only in perfect competition that P = MC is achievable, whereas in the other three market structures, namely monopolistic competition, oligopoly and monopoly, price almost certainly exceeds marginal cost.

Why P = MC indicates allocative efficiency is because the price of a good (say, good Y) measures the marginal benefit (MB) that society receives from an additional unit of good Y, and MC measures the marginal cost to society, in terms of other goods that could have been produced, because resources are allocated to produce an additional unit of it. If P and MC equate, it indicates an optimum state since MB = MC; there's no underallocation (P > MC) or overallocation (P < MC) of resources towards the production of good Y from society's viewpoint. Deviation from equality indicates economic inefficiency.

If P > MC, it means society places higher value on additional units of good Y than on other products that can be produced by the relevant resources, and hence producing more of it is desirable.

On the other hand, if P < MC, it means resources are being used to produce "excessive" units good Y when the resources could have been used to produce more of other goods which society places a higher value upon.

The answers post by the user, for information only, does not guarantee the right.

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