Vaughn Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Vaughn would sell it for $58. The cost to assemble the product is estimated at $21 per unit and the company believes the market would support a price of $72 on the assembled unit. What decision should Vaughn make

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

the amount of money you earn by working is your income.

the percentage of people actively looking for a job is called unemployment.