Running head: WILL BURY'S PRICE ELASTICITY SCENARIO
Economic Concepts in Will Bury's Price Elasticity Scenario
Will Bury’s Price Elasticity Scenario
As per McConnell and Brue (2004), economic principles are essential in economic decision-making and since it lets business managers in order to boost profit. Will Bury is an inventor with a copyrighted technology which leads to artificially voice-generated audio books (University of Phoenix (UOP), 2008). Economic principles which Bury encounters are:
As per McConnell and Brue (2004), “Microeconomics focuses on specific units of the economy.” The Will Bury situation concentrates on his business and for that reason deals with microeconomics (UOP, 2008).
Bury has got a regular job as well as gives his free time to business enterprise (UOP, 2008). But, he has been losing out on his daughter’s soccer games as well as requires to evaluate the minor advantage (McConnell and Brue, 2004). The advantage of giving up his regular job might be worth the entrepreneurial risk in order to ensure that he no more misses out on family occasions (UOP, 2008). This idea known as utility, where “Individuals look for and pursue opportunities to increase their utility - that is, pleasure, happiness, or satisfaction” (McConnell and Brue, 2004).
To have more of one thing, one forgoes the chance of having something different (McConnell and Brue, 2004). Bury needs to spend more of his money as well as time into his business so as to be successful. (UOP, 2008). The opportunity cost he will give up is the security of a company employment as well as the danger of compromising his comfy way of life. (UOP, 2008). One more instance of opportunity cost is the decision he needs to make regarding labor charges he will bear for digitizing; the higher the knowledge of the labor, the more he will need to pay (UOP, 2008).