Unit 1 Assignment
Johnny Navarro Jr.
Problem #1: Using either a graph or table (Refer to page 22 for help with graphs and tables) use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced?
I am currently self-employed and deal with online sales on a daily basis. My business is based on sales at eBay and Amazon, I have multiple products that I buy wholesale and sell at retail price. I would like to choose the situation where orders are to be prioritized based on the quality of the order and how I decide which order are to be taken cared of first. For example what I mean is when I get order a lot of them can include different quantities of the same product and also they can include different products combined in one order. In the case where I am running out of stock which rarely happens but as we all know sometimes it happens, I have to make the decisions on which orders to cover with the amount of stock that I have in that product. So if I have 20 orders to fill and only have enough product to fill X amounts of orders I would normally prioritize the orders that have the most product in them, per say an order of 6 bottle of the product that I sell which is called Bully Max, I would rather fill the bigger order because of the simple fact that they mean more profit and a more potential customer as well. This behavior causes problems and one that comes to mind is efficiency, when operating at high volumes it is lost. This is because sometimes when having to much to do one looses focus and fails to deliver the best possible customer service ultimately affecting the business. The customers are expecting to be treated equally and if they pay for the product and do not receive it in time they will be...
References: Lipsky, M. S., & Sharp, L. K. (n.d.). Retrieved from
Prescription drugs. Retrieved from http://www.drugabuse.gov/drugs-
McConnell, C., Brue, S., & Flynn, S. (2012). Economics, 19th ed.
New York, NY: McGraw-Hill.
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