Question

1.a. Due to poor condition in the job-market, you are forced to start your own business. What business would you start? What are the inputs(resources) you will need for your business? discuss using examples

b. Discuss how your business can face opportunity costs and the law of increasing opportunity costs when producing your products. Explain in detail why your business will face the law of increasing opportunity costs.

Answer 1

1. a) If I start my own business, I would start the e-commerce. This is the business of transactions taking place online, ie. the goods are purchased and the payment is being done online. Due to global pandemic, as the people are scared of stepping out of the house, so delivering stuff at the doorstep has got huge potential and would attract large number of customers.

As it is service oriented industry, so the input requirements is not much. It requires all the electronic items to be sold as an inventory, website developing and managing professionals,logistics company personnel for the delivery of goods and supply chain personnel to source and manage the inventory.

For instance, Flipkart is an e-commerce company, managing the online purchasing and selling of goods. It requires professionals for developing and managing the website, inventory of goods sold and logistics professionals for the delivery of goods.

b) Buisness can face opportunity cost as the e-commerce business is being undertaken by sacrificing the job. As the job market is facing poor condition, so the job is being sacrificed to take up the e-commerce business. The sacrificing of job and taking up e-commerce business is opportunity cost. As we sell more of items on e-commerce, the opportunity cost to sell an additional good will increase. This is the law of increasing opportunity costs.