Strength of the Economy/ Marginal Cost and Marginal Benefits By Lisa Luckhardt ECO/212 8/10/14 Terry Blankenship Explain how the strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home. How does the removal of the tax deduction on mortgage interest affect the housing market? The strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home. Here's how it will work. When the economy is growing, a consumer may feel that the purchase of a house is a good decision to make, because it gives them exactly what they desired.
Woodmere Products Case 1. What are the major business propositions for Woodmere and HomeHelp to consider in evaluating this proposal? Is time-based logistics the right strategy for each company? The major business proposition for Woodmere is Woodmere can benefit a lot from accepting the HomeHelp challenge. They can not only learn how to develop a totally new customized delivery system but also consolidate a good business relationship with HomeHelp which is a big customer.
This will assist the company in increasing their profits and it allows Brockley’s to invest more money if they need to. Budgets are important to any company, they help inform the business on whether or not they have enough money to raise the business and generate more profit. Budgets help businesses reach their goals and targets. Income increased to budget: A budget provides businesses with an outlook and structure for future plans. Income is an important area of budgeting, this because without income there is no money to work within.
Assignment 1: Economic Basics (24.0 points) 1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) Financial planning skills can help you acquire more in term of finance and can also help you secure what you have. When you have skill to plan, you are aware of how to manage your account hence adding on your profit.
These key points will build and maintain economies of scale. Is competitive pressure from Lowe’s causing Home Depot to modify its competitive strategy? Competitive pressure by Lowe’s has caused Home Depot to aggressively upgrade its old stores. Lowe’s has a store layout strategy that focuses on women customers. They see women as a decision maker of a renovation of the houses.
Economic value is a primary focus to determine infrastructure between the supply chains. No ordering and producing products without a demand will promote flexibility in terms of product mix and eliminate product waste and services. The organization will not go without stock, sales, and distribution of products in demand. Therefore, Home Depot’s supply chain value, management, vision or goals and development priorities should focus upon the following objectives in the next 24-month period. Home Depot’s key to success is the way the organization treat people well and encourage associates to speak up and take risk in leadership and development for growth.
These factors can then either increase of decrease demand. THE HOUSING MARKET I will use the housing market to try and prove if different economic theories have elements of truth in it by looking at statistics and facts, or is it simply theoretical and unrealistic. THEORY ONE ---------- The first economic theory states that if real household income rises then demand for a good, therefore houses should increase. Although housing is seen more as a necessity, certain houses can also definitely be seen as luxurious. YEAR NUMBER OF HOUSES BOUGHT (000S) AVERAGE INCOME 1990 1400 11,184 1991 1300 12,103 1992 1128 12,824 1993 1191 13,405 1994 1279 13,863 1995 1311 15,636 1996 1243 16,519 1997 1440 17,713 1998 1347 19,057 1999 1470 19,641 2000 1499 Looking at the data we can nearly automatically see that the increase in income has as a result increased the demand for buying houses due to consumer confidence and spending.
At the same time, a home addition can turn a too cramped house back into the home you love and also make the house worth more should you ever sell it. At Two By Four Construction, we do home remodeling jobs to help you get the kind of space you want and need. We can help you find the space to push a room out a little into the back yard or add an entire new room. Sometimes, the answer is to look up. Attic conversions are a great way to add more living space within the same house footprint.
However, separating this small contractor segment entails a process of market research to really know if the market is large enough and has enough purchasing power to be worth pursuing. Nevertheless, if the in-home market is really saturated, one way the company can expand and cope up with the competition is enter into this new market. Some of the junior salespeople can also specialize on this segment and might get better sales volume since it is still untapped or somewhat neglected. As long as the market is viable and the company has competent salespeople to attend to this new market needs, then there is nothing wrong in pursuing to enter this market. 2.
[pic] HEARTH INC. We help people buy homes, not houses! Buying your first home is one of the most exciting and demanding ventures you will ever undertake. It can become daunting but with the right information and proper guidance by a team of professionals from Hearth Inc, you will find this process exciting and rewarding. The Home Buying Process The first step in the home buying process is to determine whether you are financially and emotionally ready to undertake this challenge. Firstly, you will need to have a stable source of income to cover those monthly payments and an emergency savings as well as a good credit rating.