portfolio A.docx - Written Assessment ECO10004 Economic...

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Written Assessment ECO10004 Economic Principles Portfolio A Question 1 The concept of opportunity cost is a person use best alternative to choose to satisfy one need or want rather than another. Due to scarcity, societies need certainly to find a method to allocate resources to generate maximum benefits which include what goods and services be produced, how goods and services be produced and who receive the goods and services produced? For example, an industry use Production Possibility Frontier (PPF) diagram to show that it must have an option to made a choice in two goods which is A and B. However, an industry need to generate large volume of one good (A), it will be required to stop another product (B). When increasing opportunity costs, it will have required to stop more of one good create one more unit of another. Besides that, producers determine the total amount of each factor input to employ predicated on producing at the lowest unit cost to maximise profits. They choose more capital goods to restore labour if the cost of capital goods is below the cost of labour. The opportunity costs of for whom to make may be explained incidentally goods are distributed. Once the goods are produced, society must choose who reaches consume the good. Lastly, the opportunity cost of seeing a movie is the time required to attend the lecture class. For example, Alice has a choice to make decisions for the seeing a movie with friends or have the time required to attend the lecture class. If she chooses seeing a movie with friends, then she will be going to lose attended the lecture. When she loses attended the lecture class, that cause grade of her exam will drop. If she chooses to attend the lecture class, then she will be going lose time of seeing a movie with friends. Therefore, she will feel sorry to her friends because she cannot be seeing a movie with friends
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Written Assessment ECO10004 Economic Principles Portfolio A Question 2 Water is necessary for our life. The marginal benefit (MB) of a glass of water can be both
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