Economics Flashcards
1
Q
Supply and demand
A
Outside basic economics demand can be influenced by among other things ,social proof,envy and jealousy,incentives,feedback loops, association, commitment and consistent tendency ,over influence from authority contrast and ideological biases.
A business earns expections profits only if it is low cost operator or if supply of its product or service is tight.
2
Q
Margin of safety
A
Difference between waiting untill last minute and replacing it comfortably early gives us a margin of safety.sooner we replace more safety we will be having.
Just because we have built mos in one area of system that doesn’t mean system will not fail.