The price of cheese rises from $6 to $10 per pound, while the price of wine remains $3 per glass. For a consumer with a constant income of $3,000, show what happens to consumption of wine and cheese. Decompose the change into income and substitution effects.
Management Notes Certainty is the knowledge of consequences of each alternative. Uncertainty is the lack of knowledge of consequences of each alternative. Risk is the assumption about the alternatives. Conditions that managers use to make decisions much more under risk and uncertainty. Take Corrective Actions as Necessary: 1. Reorder our evaluations 2. Reschedule you work flow 3. Reassign you personnel 4. Renew the search (new alternatives) 5. Revise objectives (last resort) A competitive advantages of organizing is distinctive competency and differential benefits. When searching for an alternative, there are three areas that you must take