Response to Mr. Matt's business

1. What is the main aim of a business (like Mr. Matt’s) in producing goods and services in a Free Market Economy?
2. How did Mr. Matt in this type of economy decide what to produce (why did Mr. Matt decide to start making socks instead of slippers)?
3. In a Free Market System, how did Mr. Matt (and any other kind of business or firm for that matter) decide how to produce his slippers or socks?
4. Who were the socks produced for; that is, what market (or group) were the socks and slippers specifically targeted for?
5. In deciding to produce neon socks Mr. Matt chose the cheapest method, which meant that some workers were laid off. What are the possible outcomes for those workers who were laid off as well as those workers who were allowed to continue working for Mr. Matt?

1. The main aim of a business to to gain the maximize the profits.
2. In this type of business the economic decides the product and in this case his main consumer are the RIS students. looking at the students needs and wants enable Mr.Matt to produced the wanted product. The reason why he has to make a new product is also to satisfy the want of the RIS students. Since after the big selling of slipper, the sell rate declined.
3.In a Free Market System, Mr.Matt in this case probably went for the consumer wants by observation, because RIS student often like something that's new fashion and in trend. The Neon color which are sure to be the attraction for the new trend and fashionista. While Mr.Matt also look at the appropriate of the product to make sure that the group of aimed consumer will be able to use.
4. The socks were produce for the RIS students who previously taken interest in the neon slipper. Because the socks still retains its concept of neon for those students who like neon colors.
5. For those workers who were laid off lies many possibilities they definitely have to find a new job that's for sure, but its possible that they can find a better job that suits them which was why they could possibly were laid off for. They may find another job of the same position in other factories or they can change their specialization as well. For the leftover they would have to stick with the same job but because some workers were laid off their works load would increase as well. Due to the increase in work load there may be a possibility of getting raise or they may not.