Question

You are one of a few co-owners of a commercial space of 50,000 sq. ft. in the building in downtown of your selected town in the State of NY (please name it up front in your assignment). You have to come to a common decision like economists what to do with it now. Some of you run own private single-owned businesses and might find this space useful for your own purpose. So far, you have invested $20,000.00 in the renovation of the building. You have to motivate your decision based on the principles of economics.

Answer 1

1. The cost of something is what you give up to get it is the Economic Principle behind the decision and thus We need to initiate works on the said commercial space.

2. People respond to incentives is also a principle of economics , which need to be applied in the present situation as its a commercial space in Down town so business is also likely to flourish with new inventions been put on.

3. Trade can make every one better Off : with new activity of business in the Down Town Convenience cost will also increase and business is thus likely to flourish a lot.

4. Government may also provide some incentives or outcome based on the activity of business in the place.

5. Markets are generally good way to organize business activity and thus use of such commercial space in the activities of business will led to growth and efficiency at the earliest.