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Smartphone Industry

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Submitted By diegodagama
Words 11572
Pages 47
I. Economics

a. What is economics

Definition: Economics is a social science that deals with human wants and their satisfaction.
Ps: It's not a natural science so it's not accurate because it change all the time

b. Basic problem * Want are unlimited
Resources are limited => scarcity: It's a situation where the demand for resources exceeds the available supply * Solution => Make the better choices to manage resources.
Example: I have £50. Which one should I choice between, a white coat (£45), notebook (£25) and a ring (£20). It depends of your priority, need * You have to make sacrifice => opportunity cost: It's the best next alternative that is forgone. The alternative that is forgone is called the opportunity cost of what is produced.
Eg. If the UK government chooses to build a school rather than a hospital then the hospital is the opportunity cost. * Resource allocation: Directing resources to the desired areas to produce goods and services that are demand by society. It is to maximise profit and satisfaction.

II. 3 fundamentals questions

1. What to produce
Goods/ services that are demanded by society 2. How to produce?
Cost effective technologies (reduced the cost and not sacrifice the quality) 3. For whom to produce?
Target, people who have the purchasing power different groups

III. Goods and services

Goods: Anything that we can touch (=tangible)
Service: Anything that we can’t touch (=intangible)

a. Goods

* Free goods: they are available in plenty and don’t have an opportunity cost. Eg: sun, air, wind * Capital goods: Goods that are used to produce the finale goods and service. * Consumer goods: They are bought for final consumption * Economics goods: They are scare and do have an opportunity cost. Eg: Computer, TV, etc

IV. Resources

a.

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