competition so when people do decide to buy it they will purchase your product

Competition so when people do decide to buy it they

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competition so when people do decide to buy it they will purchase your product due to the lack of alternatives. Question 2-1 Time can be incorporated with consumer behavior theory because time is essential and an important factor in making money. People can utilize time to do homework, things in their own self-interest, and be productive. Time can be utilized efficiently to produce by the consumer to get the maximum benefit. With time there are implicate cost that people must consider. For example, if you were to spend time with your family rather than going to work, the implicit cost of time management would be the gain of having time with your family but loosing out on the opportunity of earning money. The quote “Want to make millions of dollars? Devise a product that saves Americans lots of time”, is intriguing for many people because people want to make money quickly. It takes a lot of time to make lots of money and some people might not have that kind of time. Even with millions of dollars, time cannot be bought. Time is also precious meaning that you must sacrifice
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it to make some money. A product that will save people time will make millions because time is an extremely limited and scarce resource. For example, a car will save a person a lot of time compared to if they were walking. Therefore, car companies use the cost of time to make millions of dollars by offering the opportunity for the consumer to save time in exchange for their money. 2-2 The diamond water paradox is comparing the importance of water and a diamond and their supply and demands. Although water is inelastic because it is essential and a necessity but has a low cost. The reason for this low cost because it is there is an abundance of water. Other factors would be that there are a lot of other competitors and sellers for water. On the contrary, diamonds have a small supply making it more expensive and elastic. This extra expense does not stop people from buying it because it is rare but not essential to life. The sole reason that its rare and limited makes it worth more than water. Question 3-1 The cost of selling my books online will be shown in two ways, fixed and variable cost. A fixed cost are costs that do not change with an increase or decrease in the amount of goods or services made or sold. An example of this is Mc Donald’s coffee, if they produce a hundred in a day compared to one thousand a day, the price will remain fixed. Variable cost is a cost that varies with the level of production. For example, would be a Ferrari, the more Ferraris produced the more the price will change and vise versa.
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