Question

.

a.) - SCARCITY/INCENTIVES:

OPTION 1: “INCENTIVES TO BUY HYBRID VEHICLES”

AND

OPTION 2: “THE ECONOMIC SOLUTION TO SPAM”

b.) OPPORTUNITY COSTS:

OPTION 1: DON’T FORGET THE COSTS OF TIME AND INVESTED FUNDS OPTION

AND

OPTION 2: HOW FAST TO SAIL?

URGENT: NEED ANSWER ASAP

PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL CONTENT NOT USED BEFORE ON CHEGG

PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES ORIGINAL SOURCE NEVER USED BEFORE!!!

A draft on these concepts

Answer 1

a.) Scarcity/Incentives

Option 1 : Incentives to buy Hybrid Vehicles

No. of hybrid cars, that has been increased from 10,000 cars in 2000 to more than 340,000 in 2007, can be explained by this application. Increase in gas prices alongwith federal subsidy encouraged people to buy more hybrid cars by reducing cost of driving and cost of hybrid cars. As, Subsidy was the main reason behind 1/5 th sale of 2007, which is estimated so far.

Option 2 : The economic solution to spam

Here, the spam email and unwanted text messages can be discussed in the context of this application. If the price of sending spam e-mail get increased, it will get the firms sending spam e-mail to allocate promotional resources to other activities.

b) Oppurtunity Costs

Option 1: Don’t forget the costs of time and invested funds option

Using time and money sacrifice the opportunity to use those resources in other ways. We sacrifice the opportunity to trade our time for the money we could earn working for someone else, as well as the interest we could have earned investing the money we have used in our business. Even though we don’t write a check for these costs, they are important costs for decision making. As a result, revenues must not only cover the explicit costs of doing business, they must also replace the implicit costs of the owner’s time and invested funds in order for the business to be profitable. If we are not able to cover these implicit costs, we will likely not start our own business.

Option 2 : How fast to sail

The trade off between time and money can be discussd in this application. If a cargo ship increases its speed, it will take lesser time of travel, and this will further allow to earn more revenue by delivering more cargo. However, sailing fast is costly, as in this process more fuel will get consumed. We have to determine the optimal speed, where increased revenue from delivering more cargo is greater than the increased fuel cost from sailing faster. If the result is positive, we can raise the speed of the sheep at ease.