The ABC Company executives decide that they will begin to produce more gidgets than gadgets. They previously had been producing 500,000 gadgets per year and only 300,000 gidgets. Yet they noticed that at the end of the year, there were still 100,000 gadgets left on the shelves and no gidgets.
a. In an answer of at least one paragraph, explain why the company would want to produce more gidgets based on this market data.

b. In an answer of at least one paragraph, explain why the ABC Company's decision involves a trade-off and identify what the trade-off is

Question

The ABC Company executives decide that they will begin to produce more gidgets than gadgets. They previously had been producing 500,000 gadgets per year and only 300,000 gidgets. Yet they noticed that at the end of the year, there were still 100,000 gadgets left on the shelves and no gidgets.
a. In an answer of at least one paragraph, explain why the company would want to produce more gidgets based on this market data.

b. In an answer of at least one paragraph, explain why the ABC Company's decision involves a trade-off and identify what the trade-off is