economics

ECONOMICS
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How to find and profitably, exploit moneymaking opportunities
Wealth is generated when estates move from lower- to higher-valued uses. A person’s value for something is considered to be the price he is ready to part with for the commodity. The main benefit of capitalism is that it generates wealth by allowing individuals do, as they wish. A consumer freely purchases if the money required is lower than his assessment and a trader trades if the amount of money is higher than his evaluation. The consumer and trader both benefit (Froeb, et al., 2014). It is possible for a medicine vendor in a private hospital to sell medicine and gain wealth without exploiting the buyer since the buyer also benefits from the medication. Voluntary trades create capital.
The variations between the selling value and the trader’s price are termed as the seller surplus. Buyer surplus is the customer’s price minus the amount agreed upon. The total surplus or gains from business created by the trade is the total of buyer and seller surplus.
The art of entrepreneurship involves recognizing assets in low-valued uses and developing methods to move them to higher-valued uses commercially. Sometimes things such as tax and price controls hinder the flow of assets and thus demolish wealth. These parameters lead to ineffectiveness but concurrently provide chances to make capital.
How to make profitable decisions in business.
Decision-making involves analysis of both input and output Incentives offered to industry Employees should be aligned with the objectives of the company.

According to Froeb, et al., 2014 the money cost is a fixed cost while staff or materials change with input hence called variable costs. Understanding the differences is significant for evaluations on in which way to produce and sell. Fixed costs do not change as the level of output changes while variable prices vary with volitions in output.
Negative economic profit shows that the business is making less than equity holders anticipate it to earn from their financing. A company may have accounting profit while undergoing a financial loss (Froeb et al., 2014). Economic benefit identifies both the explicit and implicit costs hence accounting profit, and economic damage is not equal. These fixed costs should be considered to come up with alternatives with the highest benefit.
In decision-making, you should start with the decision rather than the costs to avoid mistakes. In hospital setup information decision-making can be used to decide if to increase the number of babies delivered if the value of deliveries is above their revenue.
Reference
Froeb, L., McCann, B., Shor, M. and Ward, M. (n.d.). Managerial economics.