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© February 2014. The world is scarce in every aspect = Limited Resources However human is a greedy race = Unlimited Wants Allocation is the only option.

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Presentation on theme: "© February 2014. The world is scarce in every aspect = Limited Resources However human is a greedy race = Unlimited Wants Allocation is the only option."— Presentation transcript:

1 © February 2014

2 The world is scarce in every aspect = Limited Resources However human is a greedy race = Unlimited Wants Allocation is the only option available to satisfy everyone

3 “You are a very good looking man, but you have limitation in time and money, so you can only have 1 girlfriend.”

4 YOU HAVE 2 OPTIONS Girl #1: G Good Looking S Smart G Generous A very dear wife Girl #2: S Super Sexy E Easy Going F Fits with your community The ultimate girlfriend

5 One of them is the cost of choosing the other one VS The Concept of Opportunity Cost Value (Benefit) of the next best alternative forgone.

6 WORKING Sallary (Y1): $ BUSINESS Total Revenue (Y1): $ Total Cost (Y1): $ Profit (Y1): $ 5.000

7 WORKING Sallary (Y1): $ BUSINESS Profit (Y1): $ Sallary (Y2): $ Profit (Y2): $ Sallary (Y3): $ Profit (Y3): $ Sallary (Y4): $ Profit (Y4): $ Sallary (Y5): $ Profit (Y5): $ Sallary (Y6): $ Profit (Y6): $

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