This paper is in regards of how people use economic decisions that benefit them individually, professionally or as a group to help the company in its cost reduction while maintaining productivity and customer service at its peak levels. In this paper you will read and understand how an analysis of two similar services or products was evaluated and at the end the one with the lower cost but same benefits was chosen over the other competitor. In this paper it will briefly be explain how decision making will affect the contract, sale or purchase of any services and should be evaluated to either keep or substitute if the services rendered are obsolete or do not apply at the current market.
1) Provide an example of a decision in which you compared the marginal benefits and the marginal costs associated with that decision.
2) What are the marginal benefits and marginal costs associated with that decision.
3) What incentives could have led you to make a different decision?
4) Explain how the principles of economics relate to decision, and the workings of the economy as a whole.
My study was done by contacting two extended warranty companies for a 2009 PORSCHE Cayenne GTS which is about to run out of its current new vehicle warranty. The companies are listed by phone numbers (866) 621-2265 & (888) 240-0275
The companies are both extended vehicle warranties which offer a five (5) year, one hundred thousand mile warranty (100,000.00), bumper to bumper coverage.
Detail the sample's major demographic characteristics (APA 2.06)
The companies selected where selected based on their BBB qualifications, star rating, performance rating and dealer recommendations.
Both companies although offering similar service with different names, company (A) named their warranty service Diamond and (B) company named their service Platinum both offered the same coverage with the same deductible on the same components...