Answer:
Ezra runs a gyro stall at the local farmers' market. He would like to expand and open his own shop downtown. He has made the chart below, listing some potential costs and benefits of expansion. The chart is as follow:
Costs Benefits
1. Hire more workers ⇒ 1. Set own hours of operation
2. Take on more operations costs ⇒ 2. Have more space and control over appearance
3. Divide time between market and shop—or close stall at market ⇒ 3. Serve more customers
4. Accept more financial risk ⇒ 4. Make and sell more food items
The concept this chart mostly illustrates is:
- Economic choices result in trade-offs.
- Trade-offs refer to the situations in which we give up something in order to get another thing. For example, if you have to far office as they pay you more so you are giving your commute time for more money.
- Similarly in this chart, it can been seen that accepting more financial risk can unleash opportunities to make and sell more food items.