Assignment:
Part 1
• Posts must be at least 250 words in length or 1 to 2 paragraphs. Your post must be in response to prompts and/or questions posed each week. Be sure to answer all the questions within each discussion forum.
• Posts need thoughtful responses and discourse that connect to the course material.
• Reference scholarly or peer-reviewed sources to support your discussion points, as appropriate using APA 6th edition citation.
• When composing posts, please consider course content from current and earlier modules, when appropriate.
Individual Behavior in Difficult Times
In our first two modules we identified two broad groups of economic actors; they were households and firms. In our study of demand we looked at households as consumer units effecting demand for goods and services in the product market. On the supply side of the product market are the economic (or business) firms. They are the producers (and sellers) of goods and services. As a manager, your job is to use the available production function efficiently; this means you must determine how much of each input to use to produce output (production).
When the price of an input you need goes up, it affects you.
When economic times get tough, some businesses experience downturns that lead to the loss of jobs or even the closing of their doors.
Although this may be the case in many industries, it is not true for everyone. Some types of businesses survive, and often thrive as the result of economic struggles.
Drawing on what you have learned thus far, what type of products or business would survive in a recession? Please discuss individual behavior theory in support of your choice.
Reference:
Expertsmind. (n.d.). Behavior and Production.
Part 2
• Posts must be at least 250 words in length or 1 to 2 paragraphs. Your post must be in response to prompts and/or questions posed each week. Be sure to answer all the questions within each discussion forum.
• Posts need thoughtful responses and discourse that connect to the course material.
• Reference scholarly or peer-reviewed sources to support your discussion points, as appropriate using APA 6th edition citation.
• When composing posts, please consider course content from current and earlier modules, when appropriate.
Irrational Consumer Behavior
An economics professor and her husband went out to dinner and she observed one of her students drinking alcoholic beverages to excess. The professor knew the economics final exam was scheduled for the next morning. When the professor's husband realized that the student was in his wife's economics class, he described the student's behavior as irrational. The professor disagreed.
Under what conditions is behavior irrational according to the properties of consumer behavior discussed in the chapter? What situations could make the student's behavior rational?
You must first post your answer(s) before you can see the other students' posts. Submit your initial post(s) early in the week.