Question

Match each of economic concept with the scenarios that illustrates it.

Scenarios:
1. Hillary needs to buy an oven for her bakery. She compares the prices, maintenance costs, and power consumptions of three ovens. She compares the loan terms offered on them. Finally, she settles for the one that will offer the best value for the money in the long run.

2. Ramona International wants to raise about $20 million. It sells shares of company stocks in the stock market and brings many new shareholders onboard.

3. Maxima and Hercules are rival companies that make protein shakes. People love Maxima protein shakes because they are delicious and packaged attractively. Hercules protein shakes fail to impress most people. Soon, Hercules has to cut the production of its protein shakes and focus on other products.

Matching choices:
A) Consumer sovereignty

B) total cost of ownership

C) incorporation


Random answers will be reported!

Answer 1

1 goes with B. She is taking into account the price. 2 goes with C. Sales of shares of shares are included in corporations. 3 goes with A. The wants and needs of consumers affect decisions.

Answer 2

Answer:

1: B - total cost of ownership

Explanation:

Total cost ownership makes it possible for the purchaser to be aware of the purchase price plus the operation costs, which helps to choose the lower total cost for the item.

Answer:

2: C - incorporation

Explanation:

Incorporation is a way some small business owners find beneficial for continuing operating by taking measures of having partners for their business.

Answer:

3: A - Consumer sovereignty

Explanation:

The consumers have power to influence production decisions, which affects the the companies' decisions of what to produce.