We'll continue delving into the world of business today. I've decided that we will wait until Monday, November 17th to take our quiz on microeconomics. I'll have more information about that as the week progresses, and we'll also be sure to get a terms list posted for you.
You were asked to think of a business that you believe is either a "success" story or a "failure". Be prepared to discuss the business and what you believe makes it work or not work.
Types of Business: We'll start by looking at the various classifications of businesses that you find in the economy. This matrix will help you fill in the necessary information.
Costs and Revenues: We did the introductory vocabulary yesterday. Let's work with several examples today. You should feel comfortable with these terms.
- fixed costs
- variable costs
- total costs
- average cost
- marginal cost
- law of diminishing returns
- total revenue
- marginal revenue
- normal rate of return
- economic profits
SEE IT HERE: This is a useful web page illustrating these ideas: Costs: Fixed, Variable, and Sunk. Let's look here for a minute.
You can put your newly found business skills to work analyzing "Andrea's Software Business" from a handout I'll get you.
Competition - Market Structures: We'll have you begin our look at various competition models with a quick activity. Use the reading provided to work on the chart of the various market structures.
Homework for tomorrow - Wednesday, November 12th
Please have Chapter #3 of Naked Economics read for class tomorrow. Your Blog Entry #3 - Naked Economics is due to be posted before the start of class time on Thursday.
Please have both the "Four Market Structures" and "Andrea's Software Business" activities done for class tomorrow.