OTE2601 Assignment 1 2025 – Due 5 May 2025

Description

OTE2601
Assignment 1 2025
Due 5 May 2025

QUESTION 1

The consumer and the producer are forced to make careful choices about what to
consume and what to produce. Furthermore, they need to decide how to produce
and for whom. What advice would you give a beginner consumer about the
following factors?

1.1 What to produce:
First, study what people (consumers) need or want.
Producers don’t usually use their own products they make them to sell to others.
The goal is to exchange the product for money.
But this can only happen if the product is something the consumer really wants and is
willing to pay for.

1.2 How to produce:
Materials and resources are limited, so producers must choose carefully how they make
things.
The production process must be both efficient (done well) and economical (not too
expensive).
The cost to produce must match what consumers are willing to pay, so there is a fair
balance.

1.3 For whom to produce:
Producers make products for a specific group of consumers.
They must understand their customers’ needs and preferences.
It’s important to know what age group or type of customer will buy the product.