For example, if apple prices are higher than orange prices, consumers are likely to buy more oranges, since the fruits are virtually substitute goods for one another. So long as the apple growers can still make a profit, they will very likely lower their prices to meet consumer demand, until demand for apples increases again. Another example is that of gas prices. While gas 'gouging' certainly exists, it is

International Business The first thing that can be concluded is that Spain has an absolute competitive advantage in both boats and trucks. Spain's comparative advantage in boats is 3:2 but its comparative advantage in trucks is 2:1. Therefore, Spain should produce trucks and Portugal should produce boats. This is because when a country has absolute advantage in two goods, then comparative advantage is in the good where it has the greater

Managerial Economics The concept of opportunity cost reflects that when an asset is used, that asset cannot be used for something else. So if she chooses to buy a new car, the resources used to make that purchase cannot be utilized anywhere else. This is particularly important when resources are scarce. In her case, she needs to think about what the decision is. Is the choice between a new car and

moves any sort of raw material, products or shipments in general, the subject of logistics is a very important one. Whether one is speaking of forward logistics or reverse logistics, there should be a fairly constant amount of cost/benefit analysis used and harnessed so as to maximize profit and logistical capacity. Indeed, there is almost always more than one way to do something form a logistical standpoint but the

The combination of these four tools can also serve as the foundation for frameworks to define the future direction of product strategies as well. Once the extent of causality is established between products, price and interpolated for markets using the State Gap and Trend Analysis, more effective pricing models can be created that provide more granular feedback on pricing elasticity (Bryan, Rosen, Marland, 1980). Using these techniques a company

Control Systems It has come to the attention of management that the time stated on time sheets is not reflective of what is actually being worked. For a couple of reasons and irrespective of whether time is being understated or overstated, this behavior will not be accepted and must be corrected going forward. The reasons for this need range from the bottom line to the accurate payment of wages. Workers should