Betsy union is the vaughn manufacturing manager and her performance is evaluated by executive management based on division roi. the current controllable margin for vaughn manufacturing is 42000. its current operating assets total $21. the division is considering purchasing equipment for $4 that will increase sales by an estimated $1, with annual depreciation of $1. if the equipment is purchased, what will happen to the return on investment for the division?

How does your household gain from specialization and comparative advantage? (what is produced, what is not produced yet paid to a specialist to produce? )

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.

Rats that received electric shocks were unlikely to develop ulcers if the