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.

  • Opportunity Cost and the Sunday Papers

    Sep 20, 10 • 198 Views • No 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...  [read more]

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    Light Bulb Start-Ups

    Sep 18, 10 • 217 Views • No 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...  [read more]

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    Starbucks and the Clover

    Sep 15, 10 • 232 Views • No 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....  [read more]

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    Time Matters

    Sep 14, 10 • 240 Views • No Comments

    In a brief and wonderful 2003 article called “Clocks and the Wealth of Nations“, economic historian David Landes explained the importance of accurate timekeeping. China missed navigational opportunities because they did not develop the precise...  [read more]

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    Deflation Worries

    Sep 13, 10 • 272 Views • 3 Comments

    We have something else to worry about: deflation. If you had $100 in 2000, you would need $126.60 in 2010 to make the same kinds of purchases. Called inflation, prices tend to go up each year. Most consumers and businesses are happy with a little inflation,...  [read more]