Final answer:
A leading manufacturer of kitchen products using more expensive raw materials creates longer-lasting products and attracts consumers who value quality. This can result in higher profits and increased income for the business and its employees, contributing to the overall growth of a nation.
Step-by-step explanation:
Trade-offs in Business
In business class, you learn that a leading manufacturer of kitchen products may choose to use more expensive raw materials than its competitors.
This decision may result in the products lasting much longer than those of its competitors. Understanding trade-offs like this can help you in making informed business decisions.
Benefits and Consequences
By using more expensive raw materials and creating longer-lasting products, the manufacturer may attract consumers who value quality and durability over price.
This can lead to higher profits for the business. Additionally, the employees of the business may earn more income due to the success and growth of the company.
Total Effect on a Nation
On balance, the gains from providing better or longer-lasting products outweigh the losses. Consumers benefit from superior products, businesses benefit from increased profits, and employees benefit from higher income levels. This contributes to the overall economic growth and well-being of a nation.