SITUATION 1:
Many Star Hotels routinely offer unlimited buffet meals.
Economic Concept in this situation : Law of Diminishing Marginal Utility
Law of Diminishing Marginal Utility:
This concept says that when we consume one product the level of satisfaction increases if you take the second one the satisfaction levels increases, upto some level it increases but at a point of time it becomes zero then it goes diminishing.This is Law of Diminishing Marginal Utility.
Justification:
In the above given situation when the consumer is hungry he eats more and at a certain point of time his satisfaction/hunger becomes zero,then it goes negative. So when he fells his stomach is full he could not eat more. In this point the consumer is paying more and having less amount of food. So the Star Hotels are also offering unlimited food.
SITUATION 2:
Theater artists/performers performing in multiple cities/events.
Economic Concept in this situation : Mobility of Inputs
Mobility of Inputs:
It comes under Determinants of elasticity of supply. when there is transfers for the goods or services.Then it will be available without any scarce and at low cost when compared.This is mobility of inputs.
Justification:
In the above concept there is transfer for the artists it means there is mobility when they change the place and get more money.So this comes under mobility of inputs.
SITUATION 3:
Supply Curve for the live sports events.
Justification:
In the above given information it shows the supply curve of live sports event.For example, we take live cricket when it is started there will be less number of watchers but when the game is going on number if watchers will be increasing and increasing.so in this condition both the factors are increasing .As supply curve is shown above for this. This is the supply curve for live sports event.
SITUATION 4:
Three prospective locations of a large retail outlet-Location 'A' offers 750 net benefit units,location 'B' offers 900 net benefit units & location 'C' offers 850 net benefit units
Economic Concept in this situation : Opportunity Cost
Opportunity Cost:
The next best alternative cost is known as opportunity cost.
Justification:
In the above concept it says that location B is offering more when compared to other two locations. so the retailer will take the high net benefit units from location B. Here the concept of opportunity arises.
SITUATION 5:
Increased usage of combination of skilled labour and technology is believed to result in increased output in manufacturing industries.
Economic Concept in this situation : Increased Returns To Scale
Increased Returns To Scale:
Output increases more than proportionate to increase in the inputs it is known as increasing returns to scale.
Justification:
In the above situation when the skilled labour and technology is increased then there is an result in increase in the output of products.So both are increasing proportionately. So it comes under the concept of Increasing returns to scale.
Many Star Hotels routinely offer unlimited buffet meals.
Economic Concept in this situation : Law of Diminishing Marginal Utility
Law of Diminishing Marginal Utility:
This concept says that when we consume one product the level of satisfaction increases if you take the second one the satisfaction levels increases, upto some level it increases but at a point of time it becomes zero then it goes diminishing.This is Law of Diminishing Marginal Utility.
Justification:
In the above given situation when the consumer is hungry he eats more and at a certain point of time his satisfaction/hunger becomes zero,then it goes negative. So when he fells his stomach is full he could not eat more. In this point the consumer is paying more and having less amount of food. So the Star Hotels are also offering unlimited food.
SITUATION 2:
Theater artists/performers performing in multiple cities/events.
Economic Concept in this situation : Mobility of Inputs
Mobility of Inputs:
It comes under Determinants of elasticity of supply. when there is transfers for the goods or services.Then it will be available without any scarce and at low cost when compared.This is mobility of inputs.
Justification:
In the above concept there is transfer for the artists it means there is mobility when they change the place and get more money.So this comes under mobility of inputs.
SITUATION 3:
Supply Curve for the live sports events.
In the above given information it shows the supply curve of live sports event.For example, we take live cricket when it is started there will be less number of watchers but when the game is going on number if watchers will be increasing and increasing.so in this condition both the factors are increasing .As supply curve is shown above for this. This is the supply curve for live sports event.
SITUATION 4:
Three prospective locations of a large retail outlet-Location 'A' offers 750 net benefit units,location 'B' offers 900 net benefit units & location 'C' offers 850 net benefit units
Economic Concept in this situation : Opportunity Cost
Opportunity Cost:
The next best alternative cost is known as opportunity cost.
Justification:
In the above concept it says that location B is offering more when compared to other two locations. so the retailer will take the high net benefit units from location B. Here the concept of opportunity arises.
SITUATION 5:
Increased usage of combination of skilled labour and technology is believed to result in increased output in manufacturing industries.
Economic Concept in this situation : Increased Returns To Scale
Increased Returns To Scale:
Output increases more than proportionate to increase in the inputs it is known as increasing returns to scale.
Justification:
In the above situation when the skilled labour and technology is increased then there is an result in increase in the output of products.So both are increasing proportionately. So it comes under the concept of Increasing returns to scale.
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