Benefits and Cost analysis (Essay Sample)

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BENEFITS AND COST ANALYSIS
Making choices is part of our daily lives. Different factors influence the choices that we make. In buying of goods and services, we consider the goods we can afford without incurring debts. The income that one earns determines what the person consumes. Expenditure is directly proportional to the income. A person whose income is high can access many goods and services. The price of the commodity determines the consumer's choice of what to use. An increase in goods cost leads to reduced affordability (Pindyck & Rubifeld, 2001). Therefore, it is essential to consider the real income in determining what to spend to make the correct choices.
Over the past years, newspapers have been the greatest source of news. The company though is facing great challenge due to the increased technology. The production rate of newspapers is not proportional to the rate of consumption. A significant loss is incurred which need to be addressed. Companies such as media prints and the internet, which are fast and readily available, overtakes the technology used by the company to deliver the news. The price of the factors of production is also high leading to low profit.
In earlier days, people mostly the businesspersons would use the newspapers to deliver important messages. The messages included the arrival of new ships and the introduction of a new product. Later, the business people who share a common interest would meet in the newsroom where the journalist would frequent to pick up stories. Currently, most people communicate through emails and telegraphs to deliver the information. Giving feedback is easy. The method is cheap and fast. With the readily available internet all over, people can access the news just as they happen.
The televisions broadcast most news hence one only needs to press a button to get updates on current issues. In writing, a person may base their arguments on their opinion. The journalist is limited to the space hence the news given lack the details. Therefore, the newspapers are slow, expensive modes of getting the news, which make the consumers go for other alternatives (Faggini, 2010).
In an effort to remain competent, the newspaper companies increase the number of their workers to make the newspaper accessible to many people. The increased labor is however, a short-term decision that only sees an increase in profit at the beginning but a loss at the end. Initially, there is division and specialization of labor, which adds to the quality of services delivered. After some time, any addition of a worker results to less working space and limited access to capital (Guvenen & Smith 2010). Increased prices of newspapers have led to consumers opting for other means. The company does not retain its profits due to the cost they spend paying the workers.
As a man...