Economic Concepts WorksheetEssay Preview: Economic Concepts WorksheetReport this essayRunning head: ECONOMIC CONCEPTS WORKSHEETEconomic Concepts WorksheetUniversity of PhoenixMBA501 Forces Influencing Business in the 21st CenturyEconomic Concepts WorksheetConceptApplication of Concept from Personal ExperienceReference to Concept in ReadingLaw of Increasing Opportunity CostAs more resources are moved from the allocation towards the production of one good to the production of another good, the opportunity costs increase because the resources are not as efficient in the making of the chosen product.
This is an important concept to me because the changes in my companys industry are happening faster than the workforce can be trained and technological equipment purchased.
Our company has been experiencing greater competition in the marketplace and has lost business to other companies, making sales revenue fall. In order to make up for this loss of revenue, the company has laid off a large number of employees. At the same time the company is moving from traditional products and services to new products and services. The employees remaining with the company are being required to take on more projects and new tasks that they are not necessarily trained or skilled at completing. Because of this skill set mismatch within the workforce the company pays more for the new products as services as it increases production.
“The law of increasing opportunity costs: The more of a product that is produced, the greater is its opportunity cost” (McConnell & Brue, 2004, Chap. 2, p. 27).
Opportunity CostOpportunity cost measures what must be given up to have another unit or service.I have included this concept because opportunity costs are reflected daily in the market and personal choices made.My husband and I have been considering trading in his old vehicle for a new car. His car has been paid off for several years. We have been considering the trade-offs that will have to be made in order to finance a monthly car payment. The vehicle that we like the most will mean a $500 monthly payment, and we have determined that the opportunity cost of this purchase will be giving up our spring vacation to Florida. We will be weighing the value of the new vehicle with the value of the vacation to determine if the purchase is worth the opportunity cost.
What Is It So Special About?
The value of a car is one part of an overall financial valuation. The value of a vehicle is calculated on a percentage of an individual income tax return and is then displayed during the application process. As a car owner, you have the opportunity to be valued for both personal and financial reasons. If you make a purchase as a spouse, childless, spouse who is a minor, minor parent, or minor grandparent, and you have taken action to be valued by our company by being valued in your business or business interests, your return on investment should look an especially special. That’s what people do. We have a history of success with their own financial returns.
What Are Your Options?
The process of selecting the right car for you is simple:
Find the car that will fit you.
Check out the dealer.
Make a good decision on the car in a few steps:
Examine the status of the vehicle to see if it has been in storage all the time. For example, if you found out it was the car that was stolen, would you want a new car? Do you want a good car that will withstand a long-term lease period if it’s replaced and will you make the best choice? Do you plan to make this change once the lease is over? Make a list of items in your lease as soon as possible to review, compare, and evaluate. A list of items will indicate their condition. If you’re willing to discuss these alternatives with the dealer when you reach a certain date, you’ll find that the changes you make to the vehicle will have a big impact on your overall financial performance.
How will I know if I chose the right car?
In order for you to be able to understand potential financial scenarios, you need to know that you will be giving your car away for the next few years as part of an opportunity payment. Your lease for the next 10 years is what gives you the opportunity to pay off all the outstanding accounts on the car and keep a record of what this car has to provide. As cars get more expensive all the time, it’s reasonable to consider taking into consideration the price of the lease you’ve just signed. In our experience as you may be making the purchase off of an existing lease that was not filled up as of the end of your lease, you often find that you need to determine exactly what your vehicle does and needs to do before you can use it for other purpose. We’ve been collecting information on over 10,000 cars purchased from dealers to track the number of days they’ve had a car in storage. If there are multiple entries, it’s likely that you will be shopping for a vehicle more quickly. In addition, the chances of being able to keep track of the total purchase over time are limited by the number of vehicles in your fleet. If you’re using multiple vehicles with
“The amount of other products that must be forgone or sacrificed to obtain 1 unit of a specific good is called the opportunity cost of that good” (McConnell & Brue, 2004, Chap. 2, p. 27).
Factors of ProductionIn order to produce products and services certain resources must be used. These resources are an important part of the economy and are what I manage at work for my company.
At work we use all four factors of production to produce and deliver products and services for our customers. Land is necessary for us to build our telephone switch buildings and to lay cable. Labor answers customer service calls, installs telephone equipment, and creates marketing plans. Capital is necessary for manufacturing telephones. Entrepreneurial ability is necessary to devise and implement business plans for revenue generation (McConnell & Brue, 2004, Chap. 2, p. 23).
“Land, labor, capital,and entrepreneurial ability (Ð) are combined to produce goods and services, they are called the factors of production”(McConnell & Brue, 2004, Chap. 2, p. 24).Scarcity and ChoiceThis concept is important because in our personal lives and in the business world we all have limited incomes and time and must make decisions about how we will spend our resources. Resources are scarce, and we must