Opportunity cost is something you gave up to do the other thing you want to do. This is basically the loss of potential gain you can have on a certain alternative because of choosing the other alternative. In this problem, the opportunity cost of writing the term paper is $140 dollars. This can be break-down as follows:
a. $60 opportunity cost<span> she has given up for not</span> working<span> on her job</span>
<span>b. $80 opportunity cost she has given up for not going out with a friend</span>
Answer:
1. Y = 3730
2. Consumption function
Explanation:
1. Given that,
C = 140 + 0.9 (Yd)
T = 0.3Y
Yd=Y-T
I = 400, G = 800, X = 600, M = 0.15Y
Y = C + I + G + (X - M)
Y = 140 + 0.9 (Y - 0.3Y) + 400 + 800 + (600 - 0.15Y)
Y = 140 + 0.9 Y - 0.27Y + 1,800 - 0.15Y
Y = 1,940 + 0.48Y
Y - 0.48Y = 1,940
0.52Y = 1,940
Y = 3,730.76 or 3,730
2. C = 210 + 0.8 (Yd) is a consumption function.
Refine your approach by going back to the drawing board.
Answer: Option B.
<u>Explanation:</u>
The essential issue with this methodology is that you are thinking about the entire world as your customer, and not Coke has such a wide methodology. So as to successfully characterize an objective market (a genuine one), you should follow some fundamental advances:
1. take a gander at your ebb and flow client base: this progression doesn't make a difference to this circumstance legitimately, however you can look through data about comparable items offered by the challenge.
2. break down your item: what is it precisely that you are advertising? what necessities would you say you will fulfill?
3. characterize a particular segment focus on: the entire world is my objective market doesn't have any significant bearing here. You need to pick certain segment components to attempt to figure out who is destined to buy your item.
4. examine the psycho graphics of your expansive objective: psycho graphics incorporate the individual qualities of your latent capacity target showcase, for example adores creatures, caring individuals, and so on.
5. in the wake of finishing stages 1-4, consider if your objective market is excessively expansive or excessively tight, and make any adjustments dependent on your abilities and necessities.
