DIVINE IRA MENDOZA

BSA 2-2

Activity #4

a. Explain why we have to stop consumption at the end of phase 2

One of people’s bad habit is that we doesn’t discipline ourselves. Consumption is
one of the thing that we people always do. We doesn’t consider the consequences
of our actions. We must stop consumption at the end of phase 2 because if we
didn’t, in the future there will be no goods left for the next generation. We must learn
to replace any resources that we take then let it grow for future purposes.
b. Why producers must take important notice of marginal output when minimizing cost

We all know that scarcity is one of the major problems in the world. This is also the
main reason why people experience hunger. So producers must take an important
notice of marginal output to address this problem. If producers produce more goods
then its cost will be minimize. If we have high supply, cost or price of goods will be
much lower.