All of the following are advantages of capitalism EXCEPT: a. the society is very efficient in production. c. Producers and consumers answer the three economic questions of what, how, and for whom to produce b. there are great personal freedoms and opportunities to create entrepreneurship. d. Higher taxes allow for higher production of consumer goods.

Kando company incurs a $9 per unit cost for product a, which it currently manufactures and sells for $13.50 per unit. instead of manufacturing and selling this product, the company can purchase product b for $5 per unit and sell it for $12 per unit. if it does so, unit sales would remain unchanged and $5 of the $9 per unit costs assigned to product a would be eliminated. 1. prepare incremental cost analysis. should the company continue to manufacture product a or purchase product b for resale? (round your answers to 2 decimal places.)