Question

Discuss and illustrate the different tools of economic analysis that are essential in business decision-making process. Comment on the pros and cons of each.​

Answer 1

Answer:

1.capital

2.labour

skilled and unskilled

3.resources

5.nearness to market

Answer 2

Explanation:

There are many tools that are used in economic analysis. Some of the important tools with their application are;

Economic variables

The first task is to analyse what the economic variables and calculate the impact of their variances, how each will affect the decision making process

Trend

This tool is used to see the trend or slope of that variable, the rate at which it they change.

Optimization techniques

This analysis provides us information that which variables should be relied more to get the optimum results

Linear programming

This is the mathematical tool to define the maximum and minimum outputs and their associated variables