What is a Better Monetary System: Bargaining or Money?
Essay: What is a better monetary system: bargaining or money?
The preference of a monetary system is determined by considering several factors. Among them includes a wide range of production parameters which affect the rate at which goods and services are produced into the market. On the other hand, the preference is determined by the parameter affecting the customer behaviors in their purchasing (L. Meehan, 2015).
Money and bargaining is the two main systems which the markets in the universe utilize in the process of buying and selling both goods and services. In my opinion, I prefer the money system where customers, retailers and producers have the fixed charge.
Time is one of the most precious commodities with limitations.
Time is fixed presuming that it can neither be added nor reduced from its original state (Hibler, 2015). Considering this factor, one can conclude that with the bargaining system, there is a lot of time wasting as the two parties tries to get into a consensus. This is as opposed to the money system where the buyer has a clear idea on the value of a service or good. For this reason, it is right to consider that instead of wasting the time resource, prices should be fixed to help customers and other buyers make their decisions.
In the case of a money system, customers and other buyers have the knowledge on the cost of a commodity. This is as opposed to bargaining system where the price varies with different conditions unknown to the buyer (Hibler, 2015). For this reason, it is right to presume that a money stem is better as it helps one plan prior to purchasing either a good or service.
Planning and budgets especially in big institutions are a crucial policies in purchasing an item, it is therefore easy to purchase on a fixed cost basis to allow proper planning and budgeting. Buyers’ behaviors as mentioned in the first paragraph also constitute when deciding the preference system. For instance if buyers tend to have an attitude to buy more
The preference of a monetary system is determined by considering several factors. Among them includes a wide range of production parameters which affect the rate at which goods and services are produced into the market. On the other hand, the preference is determined by the parameter affecting the customer behaviors in their purchasing (L. Meehan, 2015).
Money and bargaining is the two main systems which the markets in the universe utilize in the process of buying and selling both goods and services. In my opinion, I prefer the money system where customers, retailers and producers have the fixed charge.
Time is one of the most precious commodities with limitations.
Time is fixed presuming that it can neither be added nor reduced from its original state (Hibler, 2015). Considering this factor, one can conclude that with the bargaining system, there is a lot of time wasting as the two parties tries to get into a consensus. This is as opposed to the money system where the buyer has a clear idea on the value of a service or good. For this reason, it is right to consider that instead of wasting the time resource, prices should be fixed to help customers and other buyers make their decisions.
In the case of a money system, customers and other buyers have the knowledge on the cost of a commodity. This is as opposed to bargaining system where the price varies with different conditions unknown to the buyer (Hibler, 2015). For this reason, it is right to presume that a money stem is better as it helps one plan prior to purchasing either a good or service.
Planning and budgets especially in big institutions are a crucial policies in purchasing an item, it is therefore easy to purchase on a fixed cost basis to allow proper planning and budgeting. Buyers’ behaviors as mentioned in the first paragraph also constitute when deciding the preference system. For instance if buyers tend to have an attitude to buy more
References: L. Meehan, 2015 Relationships of Clients ' Satisfaction, Impact, and Level of Collaboration with an R&d Organization, Sheridan, WY 82801 http://www.investopedia.com/terms/f/fiatmoney.asp