Urgent Help!!! - Needed By 6:00am 2mmorow! (1 Viewer)

[Chelsea FC]

Hey,

I got an Economics essay due tommorow and i desperately need your help.

"How are Entrepreneurs and Governments are faced with the Economic problem?"

(the economic prob. is when Wants are unlimited and resources are limited)

Thanks.

 

[poisonives]

well the economy faces the problem of:
WHAT TO PRODUCE
HOW TO PRODUCE
HOW MUCH TO PRODUCE
HOW TO DISTRIBUTE

the businesses/entrepreneurs have to make choices as to what products they will produce to maximise profit (considering everyone works for self-interest). they have to choose whether they want to price their products high to maximise profits, or price theirs low to maximise sales but only have a small marginal profit.
they have to choose lots more im sure u can think of them for e.g. what resources of labour to use. most of the time they will choose the cheapest form of labour... but they have to consider issues such as ethical, environmental, what could last them longer but be more expensive?

governments.. well pff good luck with that.
hope that helps