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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
Schoology
PW8HB-23CV6
