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Assignment on Business and Economic Decisions

   

Added on  2020-04-13

8 Pages1839 Words107 Views
Running head: BUSINESS & ECONOMIC DECISIONSBUSINESS & ECONOMIC DECISIONSName of Student:Name of University:Author Note:
Assignment on Business and Economic Decisions_1
1BUSINESS & ECONOMIC DECISIONSContentsScarcity & its Implication:...............................................................................................................2Price Elasticity & its importance:....................................................................................................3Monopolistic Competition...............................................................................................................4Oligopoly.........................................................................................................................................5Price Discrimination:.......................................................................................................................5Reference:........................................................................................................................................7
Assignment on Business and Economic Decisions_2
2BUSINESS & ECONOMIC DECISIONSScarcity & its Implication: In general the term scarcity implies to limitation in availability of any resources, commodities or goods. The availability concept not only refers to intuition of supply but also captures the essence of individual capacity to buy commodities keeping parity with it. It identifies the gap between limitless want approved by theory and limited resources available in the market. The notion at its core implies how impossible it is to satisfy all the human wants that are conceivable.Application of advanced technology cannot either meet this gap though it can ensure effective usage of such resources in order to maintain sustainability. A concept of trade off or sacrifice is attached within the idea of scarcity. The importance of scarcity in real world of transaction is crucial. Since resources are basic inputs of production, scarcity plays important role in production of goods and supply in the market that in turn determines the prices of transaction (Rios, McConnell and Brue 2013). It further evokes competition in the market for resources that pertain to limited existence in presence of everyone strive to access the resources. This brings forth the importance of allocation of resources judiciously that is implemented through price mechanism. The concept of scarcity highlight that not all of the wants and goals of human lives can be met hence trade off is inevitable. This evokes the importance of decision making regarding allocation and production, which hold primary importance in economics. All of the resources carries scares factor, which generates the importance of how it is used and sustained.Every economies of world are combined forces of activities revolving around production, distribution and consumption. These have basis upon resources, which has intrinsic feature of scarcity. It shapes up the economic health and mass welfare of nations through application of better human technology.
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