# Economics: Module 3 Note Taking Guide What is entrepreneurship?

 Date conversion 19.05.2016 Size 57.05 Kb.
Economics: Module 3 Note Taking Guide

1. What is entrepreneurship? _________________________________________________________________________

2. Fill in the chart of entrepreneurs and their contributions:
 Entrepreneur Contributions An Wang Madame C.J. Walker Howard Schultz James Cash Penney Samuel F.B. Morse George Washington Carver Joseph A. Unanue Margaret Hutchison Rousseau Chris DeWolfe Tom Anderson Jessica Jackley

3. What are the four main factors of production? __________________________________________________________

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4. Investments in capital goods aim to increase __________________.

5. What is the difference between a fixed cost, like rent, and a variable cost, like electricity? _______________________

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6. ______________ occurs when two businesses form into one.

a) Horizontal is _______________________________________________________________________________

b) Vertical is _________________________________________________________________________________

a) Sole Proprietorship _________________________________________________________________________

b) Partnership _______________________________________________________________________________

Economics: Module 3 Note Taking Guide

c) Limited Liability Company (LLC) ________________________________________________________________

d) Corporation _______________________________________________________________________________

8. Fill in the advertising strategy used for each example given:

9. Formulas are given to use on the following chart. (The areas highlighted in green are for you to complete). The first three rows are done for you as examples with work shown to guide you.

Total Revenue = Quantity x Price

Total Cost: Fixed Cost + Variable Cost

Profit or Loss: Total Revenue – Total Cost

Marginal Revenue is figured by finding the difference of the previous two quantities (total revenue of pair 2 – pair 1)

Marginal Cost is computed by finding the difference of the previous two quantities for total cost (total cost of pair 2 – pair 1)

 Quantity of Video Game Systems Price (in whole dollars) Total Revenue Marginal Revenue Total Cost Marginal Cost Profit (or loss) 0 252 0 0 210 n/a 0 – 210 = -210 1 246 1 x 246 = 246 246 – 0 = 246 408 408 – 210 = 198 246 – 408 = -162 2 240 2 x 240 = 480 480 – 246 = 234 564 564 – 408 = 156 480 – 564 = -84 3 234 642 4 228 684 5 222 774 6 216 1080 7 210 1410 8 204 1776 9 198 2178

Economics: Module 3 Note Taking Guide

10. Use the graph below to sketch a marginal cost analysis graph using your data above. The y-axis should be your price and the x-axis should be your quantity.

11. After watching the presentation in 3.04 on comparing market types, fill in the pros and cons of the following markets. These are listed from the least competitive to the most competitive:
 Market Type Pro Con Monopoly Oligopoly Monopolistic Competition Pure Competition

12. Business owners aim to ______________ costs and ______________ profits.

13. Using the graph below, assume a restaurant has enough resources to produce spaghetti and pizza along curve R (red). Is the restaurant MOST efficient at point B, C, or D? __________

14. If two people are out sick, would the restaurant function along curve S or T? _______

15. If the restaurant hires two more people and finds a better deal on sauce, would it function on curve S or T? _______

Economics: Module 3 Note Taking Guide

16. If the restaurant owner in the previous example makes 50 cents on each meal served and is thinking of hiring another employee at \$7 per hour, and can sell an additional 10 meals with the additional employee, should she hire a new employee? Why or why not? _____________________________________________________________________

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17. If the restaurant owner in the previous example finds that a soda machine will speed up production by eight meals each hour. The machine costs \$2 per hour to operate. Should she buy the soda machine? Why or why not? _________

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18. The graph below shows a shift in demand. If the demand shifts from D1 to D2, this shows a ____________ in the number of workers and a _____________ in wages.