Explain importance of opportunity costs to decision-making


Economics Problem

• Research elasticity information for two particular goods: one with an elastic demand and one with an inelastic demand. Using elasticity information you gather, predict changes in demand. The United States Department of Agriculture website has a good resource to help with this.

• Describe how marginal analysis, by avoiding sunk costs, leads to better pricing decisions.

• Explain the importance of opportunity costs to decision-making and how opportunity costs lead to trade.

• Evaluate how better business decisions can benefit not just the producer but the consumer and society as a whole. In your evaluation, contrast the deontology and consequentialism approaches to ethics.

The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.

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Macroeconomics: Explain importance of opportunity costs to decision-making
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