List the four factorsof production and explain why each is necessary for production to take place.
Land- Land is necessary because of its natural resources.
labour-People are needed to do the work.
capital-capital is needed to pay for production and to pay workers' salaries.
Enterprise-Businesses are needed to make sure operations run smoothly.
2. Provide an example of opportunity cost.
Sara goes to Starbucks and wants both a peppermint mocha and a brownie. She chooses the peppermint mocha, so the brownie becomes the opportunity cost.
3. Give two other examples of opportunity cost that affect groups other than consumers.
I'm not quite sure. I have: the government wants to build a fitness center and an orphanage. They pick the orphanage, so the fitness center is the opportunity cost.
4. Define value added.
Value added is the amount you sell the product for, after taking the costs of materials into consideration.
5. Explain how a clothing retailer can add value to their products.
A clothing retailer can add value by wrapping the clothes in a pretty box or by putting certain clothes on a manequin to make them look more appealing and stylish.
Wow, that website is really cool!! Thanks.
I found my second group. The opportunity cost can affect organizations.