Question

drag the tiles to the correct boxes to complete the pairs. match each economic concept with the scenarios that illustrates it. consumer sovereignty total cost of ownership incorporation hillary needs to buy an oven for her bakery. she compares the prices, maintenance costs, and power consumption of three ovens. she compares the loan terms offered on them. finally, she settles for the one that will offer the best value for the money in the long run. ramona international wants to raise about $20 million. it sells shares of company stock in the stock market and brings many new shareholders onboard. maxima and hercules are rival companies that make protein shakes. people love maxima protein shakes because they are delicious and priced attractively. hercules protein shakes fail to impress most people. soon, hercules has to cut production of its protein shakes and focus on other products.

Explanation:

1. Hillary is considering various factors like price, maintenance, power - consumption and loan terms to get the best value for money when buying an oven for her bakery. This is an example of calculating the total cost of ownership.
2. Ramona International raising money by selling company stock and bringing in new shareholders is an example of incorporation as it involves the legal process of forming a corporation and selling equity.
3. People prefer Maxima protein shakes over Hercules protein shakes, which forces Hercules to cut production. This shows that consumers' preferences (consumer sovereignty) are dictating the market.

Answer:

1. Hillary's scenario - total cost of ownership
2. Ramona International's scenario - incorporation
3. Maxima and Hercules scenario - consumer sovereignty