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qwelly [4]
3 years ago
5

“In fact, production theory is much simpler than consumption theory because the output of a production process is generally obse

rvable, whereas the “output” of consumption (utility) is not directly observable”. Explain this statement.
SAT
1 answer:
nexus9112 [7]3 years ago
6 0

Answer:

Since the output of consumption is most likely waste it is hard to track where the waste is going. Whereas with production theory the output is the product which goes to the consumer. This is much more easy to observe and is therefore "directly observable."

Explanation:

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