Business and Economic

what is economics

the study of people government business on how they make choices with scarce resource

what is scarce resources

when the resource are limited but the wants are unlimited

what is an opportunity cost

next best choices are forgone when a choice is made

what is a wage ceiling and what is it base on

a wage ceiling is the maximum amount of wage and it is base on the marginal revenue product

how do you calculate marginal revenue product

marginal revenue x marginal physical product

what is marginal revenue

the additional revenue generated from selling one extra unit of output

what is marginal physical product

the additional unit produce from employing 1 extra unit of labour

what determines flooring wage and what is it

how much another company offer determine the flooring wage and it is the minimum wage

if the price elasticity of labour supply is below 1 is it elastic or inelastic

inelastic

what is a vocational labour mobility

the abiility to switch jobs

what is a geographical labour mobility

the abiility to switch location

why are inelastic employees vocational low

due to occupational bariers

why are elastic employees geographical high

they can easily relocate to the highest offer

what is consumer demand

the willingness and ability for a customer to buy a product

what is customer willingness to buy a product influenced by?

the value of the product

what gives value to a product

satisfaction and usefulness

what is the quantity made of a product influenced by

production cost

how do we control production cost

reduce error and rework, avoid overspending by following budget , minimize waste

why should we control the production cost

to stay more competitive