econlife on ‘Businesses’

Formally called the theory of the firm, the business category focuses on ownership, production and competition. Our goal is to understand business behavior. For ownership, topics include the corporation and sole proprietorships. For production, the focus involves maximizing profits. With competition, topics relate to a continuum that spans the 4 basic market structures: perfect competition, monopolistic competition, oligopoly and monopoly.

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    Popcorn Margins

    Sep 28, 10 • 132 Views • Businesses, Demand, Supply, and MarketsNo Comments

    Higher quality film? Better projectors? Online ticketing? No. The “most important technological innovation since sound” was the armrest cup holder (according to a movie theater owner). Please think about a cup holder. The cup holder makes huge...

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    V.O.D. Wars

    Sep 27, 10 • 111 Views • Businesses, Demand, Supply, and Markets, RegulationNo Comments

    Usually, for an average of 120 days, theaters have an exclusive right to show a movie. Then, for about $4.99 we can use video-on-demand to see it on television. It sounds simple but so much more is happening. It all relates to competition. The first step was...

  • Opportunity Cost and the Sunday Papers

    Sep 20, 10 • 94 Views • Businesses, Environment, Regulation, Thinking EconomicallyNo Comments

    Articles in the Sunday papers may not have referred to opportunity cost but it was everywhere. Do you agree that judges should know the dollar cost of a prison sentence? Is it good or bad that dishwasher detergents have become less effective because of...

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    Light Bulb Start-Ups

    Sep 18, 10 • 98 Views • Businesses, Demand, Supply, and Markets, Developing Economies, Government, Innovation, International Trade and Finance, LaborNo Comments

    Does it matter where a start-up ends up? One new energy efficient light bulb was developed in Florida, its inventor lives in Florida, and the bulbs are assembled in Florida. Soon to be sold at Home Depot, however, the state-of-the-art LED bulb is destined for...

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    Starbucks and the Clover

    Sep 15, 10 • 97 Views • Businesses, Demand, Supply, and Markets, Thinking EconomicallyNo Comments

    I just had a Starbucks grande coffee from their $11,000 Clover coffee machine. It was very good. Because the Clover makes individual cups, Starbucks can let the customer choose the bean. More choice, elite beans, and you have a recipe for higher prices....