Opportunity Costs/Maximizing Happiness (Sunk Costs (The money is spent and…
Opportunity Costs/Maximizing Happiness
The money is spent and can't be gotten back.
Example: If Mr. Hills bought tickets to a play in Portland he can't get that money refunded. So if the weather is bad that day, the thought that not going would be a waste of money effects his decision of whether to go or not.
This influences peoples' decisions on what to do.
Some people find happiness in ripping other people off like Ebenezer Scrooge.
Other people find happiness in saving their money for a later date or reason. Like I would put money into the bank for college tuition.
People find happiness in spending money on things like vacations, vehicles, houses, etc.
There are different ways business can be pleased.
Providing for their community
Example: Lowe's sends its employees to do community service. This gives them a good appearance which gains peoples' trust allowing them to get more business.
This can help bring in more business for them.
Another phrase for a tradeoff
Example: I chose to eat cereal for breakfast instead of toast. The cost of making that decision is that I don't get to have toast that morning. That cost is the opportunity cost.
The cost of doing something instead of the alternative