The limited resource which is responsible for this trade-off decision is: A. The consumer has a different benefit from each possible product.
A limited resource can be defined as the resources such as land, labor, capital, time and entrepreneurship which are typically required for the production goods and services are finite and scarce in nature. Thus, these resources can be depleted (exhausted) if not properly allocated and utilized by manufacturers.
In this scenario, a consumer must decide between purchasing a new television or a new computer. This is simply because he is going to use the products to derive different satisfactions (benefits).
A computer would be used to perform different tasks such as;
On the other hand, a television would be used to watch;
- Television programs.
- Shows.
- Movies.
- News.
Hence, the difference in benefits that would be generated or obtained from using each product would create a trade-off such as weighing the benefits from each products.
In conclusion, limited resource which is responsible for this trade-off decision is that the consumer has a different benefit derived from using each possible product.
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