Business Studies


───▄▀▀▀▄▄▄▄▄▄▄▀▀▀▄─── ───█▒▒░░░░░░░░░▒▒█─── ────█░░█░░░░░█░░█──── ─▄▄──█░░░▀█▀░░░█──▄▄─ █░░█─▀▄░░░░░░░▄▀─█░░█ █▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀█ █░░╦─╦╔╗╦─╔╗╔╗╔╦╗╔╗░░█ █░░║║║╠─║─║─║║║║║╠─░░█ █░░╚╩╝╚╝╚╝╚╝╚╝╩─╩╚╝░░█ █▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄█ : Presillyn Tan Jie Yin, Fairview International School . recent update :	How to decide? written by Presillyn Tan ✈ How to decide? Every economic system faces the fundamental economic problems like what to produce, how to produce and for whom to produce. These problems are attributed by the scarcity. In other words, the available resources are limited but individuals’ wants and desires are unlimited. 1) What to produce This problem is related to what should the economy produce in order to meet everyone’s wants. If firms can produce goods in a way that maximizes consumer satisfaction, then the firm is said operates at its most efficient level. This is consistent with the Keynesian theory, supply creates demand. For instance, iPhone produces by Apple Inc. has became one of the most acceptable products in this world. The perfect integration between hardware and software is the key factor why iPhone is distinct from its rivals. As a result, Apple Inc. became world largest corporation since several years ago. 2) How to produce Today, most of the goods in the market are produced by private businesses. The intense competition in market has motivated firms to choose the most productive and least cost operation methods in production. In addition, the methods of production used by the firms also depend on the current economic condition of the country. For example, developed countries tend to utilize the capital-intensive production instead of labor-intensive production. The production method used to produce iPhone is more likely to be associated with flow production. 3) For whom to produce In this question, the market system distributes the iPhone to consumers who are able and willing to pay for the phone. Generally, the more money you have, the more products you can buy. Thus, the quantity demanded for iPhone in a society is determined by consumers’ incomes level, tastes and preferences. 0 comment[s] \| back to top	How to decide? written on Sunday, January 13, 2013 @ 5:47 AM ✈ How to decide? Every economic system faces the fundamental economic problems like what to produce, how to produce and for whom to produce. These problems are attributed by the scarcity. In other words, the available resources are limited but individuals’ wants and desires are unlimited. 1) What to produce This problem is related to what should the economy produce in order to meet everyone’s wants. If firms can produce goods in a way that maximizes consumer satisfaction, then the firm is said operates at its most efficient level. This is consistent with the Keynesian theory, supply creates demand. For instance, iPhone produces by Apple Inc. has became one of the most acceptable products in this world. The perfect integration between hardware and software is the key factor why iPhone is distinct from its rivals. As a result, Apple Inc. became world largest corporation since several years ago. 2) How to produce Today, most of the goods in the market are produced by private businesses. The intense competition in market has motivated firms to choose the most productive and least cost operation methods in production. In addition, the methods of production used by the firms also depend on the current economic condition of the country. For example, developed countries tend to utilize the capital-intensive production instead of labor-intensive production. The production method used to produce iPhone is more likely to be associated with flow production. 3) For whom to produce In this question, the market system distributes the iPhone to consumers who are able and willing to pay for the phone. Generally, the more money you have, the more products you can buy. Thus, the quantity demanded for iPhone in a society is determined by consumers’ incomes level, tastes and preferences. 0 comment[s] \| back to top

0 comment[s] | back to top

0 comment[s] | back to top