Business activity

Business activity

Recap

Definition of opportunity cost, with an example

Recap

Definition of opportunity cost, with an example

Due to scarce resources and unlimited wants, we must made decisions. All decisions will have an opportunity cost. The opportunity cost is the next best alternative foregone.

For example, if I am at dinner I can eat either the Pizza or salad. If I choose the Pizza, then the salad is my opportunity cost.

Recap

Definition of opportunity cost, with an example

The opportunity cost is the next best alternative foregone when making a decision.

I can eat either the Pizza or salad. If I choose the Pizza, then the salad is my opportunity cost.

Recap

Definition of opportunity cost, with an example

Due to scarce resources and unlimited wants, we must made decisions. All decisions will have an opportunity cost. The opportunity cost is the next best alternative foregone.

For example, if I am at dinner I can eat either the Pizza or salad. If I choose the Pizza, then the salad is my opportunity cost.

Recap

Specialisation

Definition

Example

Benefits to specialisation

Disadvantages to specialisation

Specialisation

Once we understand specialisation, we can now look at division of labour

Division of labour is...

What do businesses produce?

Goods

And

Services

Further breakdown

Consumer goods

Further breakdown

Captial goods

Further breakdown

Consumer services

Case study – PT products p 15

A. This year RTP can produce.... printer cartridges

B. Consumer goods are.... examples... Capital goods are... examples...

C. Division of labour is when..... I think that the Operations Director should..... because.....

Adding value

Adding value is defined as...

Examples include....

Adding value

Adding value is defined as...

Examples include....

Adding valueMethods to add value...

Branding

Excellent customer service

Product features

Convenience

Activity 1.5How do these businesses add value:

Restaurant

Shoe manufacturer

House builder

Florist

https://www.youtube.com/watch?v=T8KJGtMGMSY

Schoology

PW8HB-23CV6