If We Know an Assumption About an Economic System Is

question 96

Essay

If we know an assumption about an economic system is not true, what is the justification for keeping this assumption in a model?

---

Definitions:

Low-Cost Leadership

Achieving maximum value, as perceived by the customer.

Customer Perceives

The way in which customers view or interpret the value, benefits, or quality of a product or service based on their experiences or information.

Adding Value

The process of enhancing a product or service's worth by improving its features, usability, or other characteristics important to the consumer.

Global Operations

The activities involved in producing and delivering goods or services across multiple countries and territories.