Economic Assumptions Flashcards
1
Q
what does assumption mean?
A
things that you think are true although you have no definite proof
2
Q
what does irrational assumption mean?
A
not based on clear thought or reason
Consumers:
-unaware of hidden perks
-loyalty to brand
-influences from other people
3
Q
what does rational assumption mean?
A
based on clear thought or reason.
-cheapest price
- best quality
Business owners
- buy materials at cheapest price
-sell products at highest price
4
Q
what is a retalier?
A
business that sells goods to members of the public rather than to shops
5
Q
Revenue
A
the money obtained by busness selling products over time
6
Q
maximise
A
to increase something to maximum eg profit
