FLVS Economics Module 3 DBA Review

What are some examples of capital?

commercial aircraft are capital goods because they are used by airlines to produce a service, transportation trucks and cars used by businesses commercial buildings, like factories, offices, and warehouses

How might a business increase its profitability?

reducing costs or develop new products or services

How can a business owner determine the selling price and production level that will maximize profits?

the marginal cost and marginal revenue for a product market to determine at what quantity and price to produce to maximize profits. Producing at the price and quantity where marginal cost and marginal revenue intersect will maximize the firm's profits.

When might a monopoly be acceptable, even desirable?

when someone is in need of high money income or they want higher income desired when people need someone to take control of supply and demand

What market structure is most visible in our daily lives and why?

Monopolistic competition they make products that are very similar so we see them a lot

How can the method of business organization impact success?

If you don't have a clear plan for business organization you could lose everything cause you get mixed up

How has entrepreneurship helped shape American society? Give a specific example.

It made life more convenient and opened up for more ideas and things to be created ex: George Washington Carver, who developed a plethora of products with the peanut crop and established new agricultural practices

Explain the purpose of marginal cost analysis.

It measures increasing or decreasing the costs of production, which allows a company to evaluate how much they actually pay to produce

What do you need to start a successful business? Give me an example for each category of the factors of production.

Land represents all natural resources, such as wood. Labor= workers. Entrepreneur who takes an idea and attempts to make an economic profit from it by combining all other factors of production.

How can the market for a good or service influence business decisions?

Like in a "monopolistically competitive market they're all producing the same things so if you wanted to produce that thing it'd be hard to look unique compared to them

What do you think is the best form of business organization and why? Can you give me a local example?

Limited Liability Company because making a business is very risky and this way you don't lose everything if it fails ex:banks