Case Study : Cat And Mouse

1182 WordsOct 14, 20155 Pages
As a consumer, having knowledge behind the interworking of the economy can only be beneficial in assisting in maximizing savings in cost while simultaneously maximizing our product consumption. The economy tends to be involved in the classic game of “cat-and-mouse” where one half of the economy, the producers, tries to trap consumers into purchasing their products by over glorifying certain aspects of the product against virtually the same product as another producer, offering slightly lower prices than their competition, appealing to the reported results of market research, etc. In order for producers to continuously gain and control profit outcomes, businesses and corporations alike must know where their breakeven points are, where they can find the perfect compromise between output and input (of resources, labor, costs, price, etc.), as well as their minimum and maximum limits (price ceilings and floors). Producers use these statistics and charts/graphs to help manage their productions and to even help predict future trends based off of previous trends and estimated values shown on graphs. As Dr. Phil said "The best predictor of future behavior is … past behavior" (Phil, 2013). In the economy, there is a constant cycle between the producers and the consumers (mainly). The consumer purchases products produced by the producers, while the producer uses statistics and charts to map the trends and the potential course of future purchases of the consumer in order to maximize
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