just another manic monday, sept. 23€¦ · themselves. the campus was nice and it was relatively...
TRANSCRIPT
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Just Another Manic Monday, Sept. 23
• Warm up: Quiz your neighbor about supply and demand, including the shifters!! We will have a quiz in five minutes.
• Learning target: I can compare and contrast four kinds of market structures—perfect competition, monopolistic competition, oligopoly and monopoly.
• Homework: – USATP Unit 2 #3 due TODAY by midnight!– USATP Unit 2 #4 due next MONDAY by midnight!
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I DO NOT accept homework via email!
Arafat & Drego need to upload PDF or Word doc of current event to Edmodo.
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Why does Ms. Browngive us so many darn quizzes?
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2014 Top Ten Fortune 500 Companies’ CEOs’ Undergraduate Alma Maters
1. Wal-Mart -- University of Arkansas (MBA from U. of Tulsa)2. Exxon Mobil -- University of Texas3. Chevron -- University of California, Davis4. Berkshire Hathaway -- University of Nebraska5. Apple -- Auburn University6. Phillips 66 -- Texas A&M7. General Motors -- the General Motors Institute (now called Kettering Univ)8. Ford Motor -- University of Kansas9. General Electric -- Dartmouth College
10. Valero Energy -- U. of Missouri-St. Louis (MBA Our Lady of the Lake U.)Source: Bruni, Frank. Where You Go Is Not Who You’ll Be: An Antidote to the College Admissions Mania. New York, Hachette Book Group, 2016.
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Market Structure Characteristics• How much competition is there?
1. Number of producers: The more businesses there are in the market, the more competition there is.
2. Similarity of products: The more similar the products are, the more competition.
3. Ease of entry: How easy is it to start a business in this market? Easier = more competition.
4. Control over prices: How much control does a producer have over overall prices? Less control = more competition.
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• Read about market structures on the following pages in the new textbook: 127-131, 133-136, 141-146 and complete the graphic organizer.
• With your group, prepare a poster for an industry based upon the description and instructions given.
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You are Special -- Tuesday, September 24
• Warm up: Create two index cards from you brains, NOT your notes: (1) pure/perfect competition market structure and (2) monopoly market structure.
• Learning target: I can compare and contrast four kinds of market structures—perfect competition, monopolistic competition, oligopoly and monopoly.
• JD missed yesterday’s quiz--please take it NOW• Homework:
a. USATP Unit 2 #4 due next MONDAY by midnight!
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“My wife really wanted to go to the University of Virginia and didn’t get in. I really wanted to go to Georgetown and didn’t get in. So we both ended up at [the University of] Delaware. It was a place
where all of us felt that if we worked hard, we could do well. I never felt like the school wasn’t going to
give me the tools to be successful.” -Chris Christie, Governor of New Jersey and 2016
presidential candidate Source: Bruni, Frank. Where You Go Is Not Who You’ll Be: An Antidote to the College Admissions Mania. New York, Hachette Book Group, 2016.
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Why does Ms. Browngive us so many darn quizzes?
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Market Structure Characteristics• How much competition is there?
1. Number of producers: The more businesses there are in the market, the more competition.
2. Similarity of products: The more similar the products are, the more competition.
3. Ease of entry: How easy is it to start a business in this market? Easier = more competition.
4. Control over prices: How much control does a producer have over overall prices? Less control = more competition.
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Work Period:
(1) 15 minutes to finish market structures graphic organizer
(2) With a partner or on your own, create a graphic equation poster that explains the industry you have been assigned.
(3) Using your graphic organizer and the industry description, follow the instructions for completing a graphic equation.
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You are Valued--Wednesday, Sept. 25
• Warm up: Create two index cards from you brains, NOT your notes: (1) monopolistic competition market structure and (2) oligopoly market structure.
• Learning target: I can compare and contrast four kinds of market structures—perfect competition, monopolistic competition, oligopoly and monopoly.
• Homework: a. USATP Unit 2 #4 due next MONDAY by midnight!
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“[The University of Delaware] offered me a good amount of scholarship and grant money. . . . My family was not affluent at all, and it made a huge difference. The second reason was, I went down there and visited--it’s strange the way you make decisions when you’re seventeen or eighteen--and everybody seemed happy and everybody seemed to be enjoying themselves. The campus was nice and it was relatively close to home. It wasn’t a whole lot more complicated than that.”
-Chris Christie, Governor of New Jersey and 2016 presidential candidate, about choosing U. of DE Source: Bruni, Frank. Where You Go Is Not Who You’ll Be: An Antidote to the College Admissions Mania. New York, Hachette Book Group, 2016.
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Work Period1. 20-30 minutes: finish graphic equation poster2. Gallery walk
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• Number of producers: Lots of businesses• Similarity of products: Identical• Ease of entry into market: Few restrictions; very
easy to start a business in this market.• Control over prices: Very little; there are too many
producers for one business to influence prices.
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• Number of producers: One business
• Similarity of products: One-of-a-kind
• Ease of entry: Very difficult
• Control over prices: One business can control prices
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Government- created monopolies
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Natural monopolies
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Monopolies are illegal in the U.S.
unless authorized by government.
Why?
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• Number of producers: Just a few• Similarity of products: The same, with minor variations• Ease of entry: Difficult (mostly because of high cost of
starting a business in this market)
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Oligopoly = four top producers supply more
than 60% of goods/services in that
market.
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• Control over prices: One business can have control over prices that will cause a response by competitors and create “price wars” (e.g, car companies offering 0% financing)
• Sometimes they will set prices, called Collusion, which is illegal.
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• Number of producers: Large number of producers
• Similarity of products: Similar but with product differentiation.
• Ease of entry: Relatively easy
• Control over prices: Some control over prices
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Most common kind of market structure.
Pantene $14.50 Frederic Fekkai $54Product differentiation
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You can make the effort!Thursday, September 26• Warm up: Warm up: Find your blue unit overview
sheet--underline standards we have covered so far. Put a star * by vocabulary words we have used and that you know; put two stars ** by vocab words we have used that you DON’T know.
• Unit 2 test next Wednesday, October 2• USATP Unit 2 #3 due Monday by midnight• USATP Unit 2 #4 due Tuesday by midnight
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Market Structures--Let’s Finish!
• Get out your graphic organizers for market structures (one for your research and one for the gallery walk)--what posters do you still need to see?
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How Are Businesses Organized?
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Business Organization: Our Final Unit 2 Standard
Compare and contrast three forms of business organization (sole proprietorship, partnership, and corporation) with regards to number of owners, liability, lifespan, decision-making, and taxation.
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Business Organization: Number of OwnersHow many people own a business?● Just one?● A few?● Thousands?
How does the number of owners affect the way a business is run?
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Business Organization: Liability
● Liability: Being responsible for something● Who is liable (responsible) for the debts (loans), losses or other
costs of the company?○ E.g., if you borrow money from the bank for your sole
proprietorship, can the bank take your savings account if you don’t pay back the loan?
○ If you own shares of Home Depot Corp and Home Depot doesn’t pay back a loan, can the bank come after your savings account?
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Business Organization: Lifespan
● Lifespan: How long something will last or function● What happens to different business organizations if the owners
die?
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Business Organization: Decision-making
● Who makes decisions for different business organizations?○ For example, who decides what products to make?○ Who decides to hire employees?○ Who decides to take out a loan or move to a new location?
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Business Organization: Taxation
● How will the income or profits of the business be taxed?● How will the owners of the business be taxed?
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Work Period1. Research the three types business organizations using
pages 60-70 in old green textbook, OR pages 159-168, 171-174 in the new purple textbook AND the handout
2. Complete the graphic organizer about business organizations--this is due by end of class today!
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Work Period
Using pages 60-70 in a textbook and the handout, complete the graphic organizer about business organizations.
You will use this information to make a presentation to the class on Wednesday!
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Sole Proprietorship• Businesses owned and run by a single person who
has the rights to all profits and unlimited liability for all debts of the firm.
• Easy to start, but owners have unlimited liability for all debts of the company.– i.e., if the business can’t pay debts, the owner
must use his/her personal money to repay
• The most common form of business organization in the U.S.
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Partnerships• Unincorporated business owned and operated
by two or more people who share the profits and responsibility for debts
• In a partnership, each partner fully shares responsibility for the operation of the business and all profits or losses.
• A partnership has many of the same advantages and disadvantages of a sole proprietor.
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Corporations
• A corporation is a formal, legal entity all its own.
• One of the most important forms of business
• Individuals who wish to incorporate must file incorporation papers with the state where the business will have its headquarters.
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Business Organization Questions
• Talk to your partner and read the textbook about each of these questions and fill in the back of your G.O.
• In each of the three structures,
– Who earns profits?
– Who is responsible for debts?
– How easy can the business raise money?
– Who makes final decisions?
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How Are Businesses Organized?
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Sole Proprietorship• Easy to start, but the owner has unlimited liability for
all debts of the company.– i.e., if the business can’t pay debts, the owner
must use his/her personal money to repay
• Taxation: the owner is taxed on the profits of the business
• The most common form of business organization in the U.S.
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Partnerships• Each partner has unlimited liability for all debts
of the company.
• Taxation: the partners are taxed on the profits of the business
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Corporations
• The owners (i.e., shareholders) are NOT liable for the debts of the corporation. The corporation itself is liable b/c it is a formal, legal entity.
• Taxation: “double taxation” when corporate profits are taxed AND when the earnings (“dividends”) of owners are taxed as personal income.