Refer to Exhibit 1-1, and give an example of a purchase you made recently that involved separation of information and separation in time between you and the producer. Briefly explain how these separations were overcome.
In Exhibit 1.1

Transcribed Image Text:

Production Sector Specialization and division of labor result in heterogeneous supply capabilities Spatial Separation. Producers tend to locate where it is economical to produce, while consumers are located in many scattered Discrepancies of Quantity Producers prefer to produce and sell in large quantities. Consumers prefer to buy and consume in small quantities aces Separation in Time. Consumers may not want to consume goods and services at the time producers would prefer to produce them, and time may be required to transport goods from producer to consumer Separation of Information. Producers do 2 Marketin needed to overcome not know who needs what, where, when and at what price Consumers do not know what is available from whom, where, when, and at what price. Separation in Values. Producers value goods and services in terms of costs and competitive prices. Consumers value them in terms of satisfying needs and their ability to pay Separation of Ownership. Producers hold titie to goods and services that they themselves do not want to consume. Consumers want goods and services that discrepanciesat and separation Discrepancies of Assortment. Producers specialize in producing a narrow assortment of goods and services. Consumers need a broad assortment L they do not own. Consumption Sector Heterogeneous demand for different goods and services and when and where they need to be to satisfy needs and wants