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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    Venezuela’s Prices

    Nov 10, 10 • 231 Views • No Comments

    You might find it interesting to ponder the implications of the sign in a Venezuelan shopping mall which I saw on Harvard’s N. Gregory Mankiw’s blog. Called Mercado Bicentenario, the store was a part of a chain that had recently been nationalized...  [read more]

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    Cotton and Crocodiles

    Nov 9, 10 • 232 Views • No Comments

    A Malaysian proverb tells us, “Don’t think there are no crocodiles because the water is calm.” Looking at cotton markets, perhaps we should remember the crocodiles. According to The Wall Street Journal, cotton prices are soaring. Speaking as...  [read more]

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    Creatively Destroying Pontiac

    Nov 7, 10 • 274 Views • No Comments

    At some point, sooner or later, people get tired of black. During the 1920s, Henry Ford realized that the Model T, so very practical and affordable because it only came in black, needed some vitality. What forced him to recognize that the Model T was becoming...  [read more]

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    Outsourcing and Immigration

    Nov 4, 10 • 214 Views • No Comments

    A recent economics paper provides a surprising solution to those who believe outsourcing is a problem. The story, as explained by George Mason economist Tyler Cowen, involves the connection between offshore jobs and immigration. Traditionally, economists say...  [read more]

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    Banana Machines

    Oct 30, 10 • 263 Views • No Comments

    It is tough to design a vending machine that will handle a banana gently. The temperature needs to be 57 degrees, a 4 foot fall to the consumer should be gentle, and they have to remain ripe for as long as possible. It gets even trickier when celery, which...  [read more]