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1. Opportunity cost
Example: There are 3 shops which gave me a correct product that I want. Shops A, B, and C. So here I am face trade-offs. Net benefit units from shop A is 1000 and from B shop is 800 units and from C shop 850. So I am choosing Shop A because shop A gave me more benefits comparison to other shops. The opportunity cost choosing A is not being choosing shop B and C.
2. Increased return to scale
Example: In a manufacturing industries when we want to increase the output we usages the combination of skilled labour and technology. That concept related to increased return to scale that believed that combination of skilled labour and technology helps to increase the output.
3. Price Mechanism
Example: With the increase in demand even if price increases people will buy. When a particular fruit has its season the demand for that fruit increases. So people will be eager to buy. So vendor increase the price of that particular fruit. On the other hand, when the season for that fruit goes demand for that fruit also decreases. So the vendors decrease the price in order to entertain the cash flow.
4. Law of Demand
Example: When the artists performing at different cities because of the increase in demand for their performance and according to law of demand is satisfaction of customers so that artists performing in different cities they are satisfying the demand of their fans.
5. Marginal Utility
Example: People see more and more tourists places rather than religious places because they more satisfaction get from tourists places. The facilities provided at tourists places are more than religious place and if consumer experience these facilities in a tourists place then he prefer going to tourist places rather than to a religious place.
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