Based on the readings, activities and writings from chapter 3, please answer the following questions:
- If the price of a product is set below the equilibrium price, what happens to demand? What happens to supply?
- Markets for new products often are monopolies. Why do you think this is so? Can you think of examples of markets for new products (past or present) that are monopolies?
- What do you think the fixed costs and the variable costs would be for a movie-rental business?
- You are planning to start a day-care business for children. What government regulations might impact your business?
10 comments:
Consumers would be more willing to buy the goods at a lower pricer, but suppliers can not produce fast enough, or are nto willing to.
When people go into a business, they want to do something new and novel, so there is little or no competition, which forces consumers to use your busniess/product. It is a smart, purposeful business decision.
Buying the movies would be a fixed price, but the rental price would be variable.
You would need...
-sanitary, clean facilities
-properly nutrional food
-correct amount of staff
-correct size for a certain number of kids
Brian Finney
Consumers would be more willing to buy the goods at a lower pricer, but suppliers can not produce fast enough, or are nto willing to.
When people go into a business, they want to do something new and novel, so there is little or no competition, which forces consumers to use your busniess/product. It is a smart, purposeful business decision.
Buying the movies would be a fixed price, but the rental price would be variable.
You would need...
-sanitary, clean facilities
-properly nutrional food
-correct amount of staff
-correct size for a certain number of kids
Brian Finney
1)selling tobacco and alchol you need a license for because you cant have any guy off the strees sellin bottles of home made alchole with non healthy tings in it
2)if a worker gets hurt and that person depends on there job for living and there family to survive and big buisness usiually do this for their emploies
3)yes health and auto because if you were to get hurt and went to a hospital and cant afford the bill you still will owe them and same with auto if you get in a accedent and cant afford to fix the other persons car
Richard Robistow
1. The demand would increase but the supply would decrease.
2.Monopolies are strong buisness' so they can affored a product wheather is fails or not.
3. a fixed cost could be the cost ast which it was to take a movie out but a variable cost could be how much overdue chargers were.
4.In order to have a day care buisness you would have to get certain licenses to be certified as a professional.
Elizabeth Devolve
A. IF A PRODUCT IS SOLD CHEAPER THAN INTENDED THAN PEOPLE WOULD BY IT RATHER THAN SPENDING MORE MONEY ON IT BUT THE COMPANY THAT MADE IT WILL NEED TO PRODUCE THEIR PRODUCTS MORE RAPIDLY BECAUSE THE SUPPLIES SELL QUICKER AND FASTER.
B. IF SOMEONE OPENS A NEW BUSINESS BY MAKING NEW PRODUCTS THEY WOULD MOST LIKELY BE MONOPOLIES BECAUSE THEY ARE THE FIRST PERSON TO MAKE THE PRODUCT SO NO OTHER MARKET WOULD BE PRODUCTION IT THUS FAR LEAVING THIS ENTREPRENEUR THE OWNER OF A MONOPOLY. SOME PAST MONOPOLIES WERE APPLE WITH THEIR IPODS, THEN YOU HAVE FORD AND HIS MODEL T'S, AND MAYBE EVEN THE FIRST CELL PHONE COMPANY.
C. AT A VIDEO STORE I THINK THE FIXED PRICES WOULD BE THE RENT AND ELECTRICITY. THE VARIABLE PRICE WOULD BE BUYING THE DVD'S AND THE COST PER RENTALS.
D. I DON’T KNOW PROBABLY THE HEALTH INSPECTOR, THE TOWN WHO GIVE OUT PERMITS, MAYBE THE CAPACITY FOR CHILDREN, AND ALSO CHILDREN TO HANDLER RATIO'S???
ADAM HART!
1) Consumers would be more willing to buy the goods at a lower pricer, but suppliers can not produce fast enough, or are not willing to.
2) People who go into a business want to do something new so there is no competition. Which forces consumers to go to your business. MP3 players from Apple.
3) Buying the movies would be a fixed price, but the rental price and late fees would be variables.
4) You would need a clean building, healthy food, enough staff, correct size for your allowed amount of kids.
Ross Parlon
Stephanie Bryant
Period F
1.) If the price of a product is set below the equilibrium price,people will be more willing to buy the product, thus, the demand would begin to go up. However with a larger demand on the business to make all of the desired products, supply would in turn go down.
2.) I think that the markets for new products are often monopolies due to the fact that when first starting out, the business owner and/or inventor wants to offer the comsumer something that has never been seen before, something truly inovative making it hard at first for other companies to compete against it. Such an action would cause the market of the new product to become a monopoly. An example of a past market that was a monopoly would be Apple, being the first market to offer the sale of I-Pods to comsumers, which soon bcame a big hit among teens and people in general worlds over.
3.) Fixed Costs:
-Renting a movie
-Paying for late charges (if you exceed your days of rental)
Variable Costs:
-The type of movie you rent
ex.) New movies might cost more than older movies
-How much extra you have to pay on late charges
ex.) A movie two days late would have a smaller late fee, than one a week late.
4.)Some government regulations that might impact my day-care business would be:
-Daycare License
-CPR and First Aid certification
-Safety regulations
-Liability insurance
-Food programs
-Correct Staff to child ratios
-Correct Size of business verses number of children ratios
Alot of people are going to want to buy more of the product at a lower price but the suppliers won't have enough resources to produce them fast or want to.
Alot of people want to oepn a business which produces something that cannot be monoploized. Such like Wal-mart cannot put them out of business because they will sell lower. So they need a produce or service that cannot be monopolzed.
Buying a car would be a fixed priced, but renting price would be variable.
Requriments:
-clean facilities
-properly nutrional food and games
-correct amount of staff per kid
-correct size for a certain number of kids
Josh Spilewski
If the price of a product is set below the equilibrium price, what happens to demand? What happens to supply? the demand might go up while the supply would go up also.
Markets for new products often are monopolies. Why do you think this is so? Can you think of examples of markets for new products (past or present) that are monopolies?
because one company controlls all of the market, like toys r us.
What do you think the fixed costs and the variable costs would be for a movie-rental business?
they would be alot but im not sure how much.
You are planning to start a day-care business for children. What government regulations might impact your business?
your education, money, if you have the right things to make your business.
Tom Watson
#1. There would be a high demand but the suppliers would not be able to keep up with the supply.
#2. Once you are able to have everyone coming to you to buy things that no one eles has that is when you are a monopoly. An example is Wal-mart because they dont just sell apliences they also sell food. So now people can go there and do both things at once, instead of making 2 trips.
#3. The variable costs are how much it costs to buy the movie or to take it out, and fixed costs are when you rent the movies.
#4. The government regulations are if it is a safe invironment, if you are a responcable person and if you are resonceable and have the licences and are qulifide to do it, and do you have the safety requirments.
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