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Other Topic Essay Example

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For example, while making a decision to either go to college and attain intellectual enrichment at a given cost or leave school and spend the fee in a luxurious life. The opportunity cost of an item is the cost foregone to acquire another piece. When making economic decision, managers ought to be conscious of the opportunity costs that go along with each imaginable decision made (Gregory 2012).According to Laurence Sideman and Gregory economist, will usually assume that people are rational. A reasonable person will do his best to achieve his goal, or objective gives favorable working conditions. A rational decision maker takes an action if the marginal benefit expected exceeds the marginal cost (Gregory 2012).Incentives induce people to act in a particular manner. They can either be in the form of punishments or rewards. Considering the case where, the price of an apple rises, consumers will buy fewer apples. At the same time, apple orchards will tend to increase production thus hiring more labor force and gather additional apples. High market prices provide incentives for consumers to consume fewer and suppliers to produce extra (Parker, (2008).The above principles are essential to the management on their decision-making criteria. They guide the managers to making the most appropriate decisions. This policy will enable the business to monitor the market efficiently and identify the opportunity cost available thus making the right tradeoffs and at the right season to ensure a fluent flow of trade.Business interactions are very essential to the management of every company. Managers must be able to identify their competitors. For example, both the American and the Japanese economies tend to be significant competitors because they tend to produce similar goods like motor vehicles (Gregory 2012).Trade competition is not the same as a sports game where one party will eventually lose. On the contrary, trade against countries will better each party.Organizations select what kind of personnel to fire to work for them and also what type of commodity to produce. In return, households make their decision on where to work and what to buy with their incomes (Gregory 2012).In nearly all cases, experienced persistent inflation has been as a result of growth in the quantity of money by the government. When a government fails in monetary policies and makes large amounts of money, the value of the money goes

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