Explain How the Market for Opticians Is Affected as a Result

question 90

Essay

Explain how the market for opticians is affected as a result of the development of laser technology which reduces the demand for glasses and contact lenses.In your explanation be sure to show the connection between the market for glasses and contact lenses and the market for opticians.

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Definitions:

Incremental Analysis

A financial decision-making approach focusing on the costs and revenues that change due to a specific decision.

Costs

Costs represent the monetary value spent on resources, labor, and other expenses necessary for the production of goods or services.

Sunk Cost

An expense that is irreversible and non-recoverable, hence it should not affect upcoming corporate choices.

Incremental Cost

The additional cost incurred to produce one more unit of a good or service.