Introduction
The terminologies in the read article explain the economical concepts that capture on the consumer behavior and the costs the firms incur and the way they can generate profit. In broad sense the essential precautions and description of these concepts for example cost and revenues, expenses and generation of consumer marginal state.
The information relates in clear manner to my professionalism. As an account it is essential to know the instance of checking on the costs that firms incur. This aids in the harmonizing the accounting reports for example in avoidance of mismatch. The explanation of the instances of considering the total revenues by subtracting the total cost in order to obtain the profits the firms incur. On the behavior of the consumers for example in the derivation of utilities explain the mismatch. It is important to note that elasticity in prices are caused by the abnormality in demand, when there is high demand of products than supply price hike. It is a responsiveness of price in the changes of quality demand and supplied.
The information solidifies the information already gathered for example in noting the differences in marginal utility and the diminishing marginal utility as shown by consumer when deriving utility. The more they access the utility, there will be a diminishing. Learning new concepts on water – diamond terms which explains the preciousness of some products and lack of affordability and the instance of water being abundant.
It is applicable in the real life situation. In this instance the focus lies on the consumers behavior in which depicts the economical instance of marginal utility and their price elasticity in calculation of the total cost. Marginal cost among other cost can be applied in explaining the behaviors in the economy.
