Discussion Question

Discussion Question 1 a. Watch the following: http://www.youtube.com/watch?v=nMlgiVT3_i4[Some report, because of settings, that they can’t open this. If this is the case, Google: Detnews Ford Brazil video ] If you were trying to sell cars to consumers with high incomes, like in America, and then low incomes, in countries like Brazil, Argentina, Nigeria and Peru, what would you consider when deciding where to produce? Lean manufacturing [cutting out fat], or too many inputs (land, labor, capital) is what managers try to do. What examples from your work life have you seen ‘cutting back inputs/fat’? b. Watch the following:https://www.youtube.com/watch?v=ffTkHMzeCII Why does German BMW build cars in S. Carolina and export them to 120+ countries? c. MJM Foodie Production Function describes the relationship between inputs and outputs. Use a company you are familiar with and list 5 inputs and the company’s outputs.

Discussion Question 2 1. Generally speaking, when a student looks at Econ, the Law of Demand is easier to understand – we start shopping early in our lives. It’s harder to master the Law of Supply. If price increase for the price of oil, what happens to the quantity of oil supplied [revisit the Law of Supply]? We often are producers; imagine a Thanksgiving Dinner. What does ‘too many cooks in the kitchen mean’? [* Note: this is different from 'too many generals and not enough soldiers. *] 2. Look up the Law of Diminishing Return – give an example when you experienced that. Take a look at the following: http://www.youtube.com/watch?NR=1&feature=endscreen&v=indJfyXXSrQ [Econ profs trying to be funny, with a key lesson =:-]http://www.youtube.com/watch?v=bSfe20IkGRs a. Do these and the MJM Foodie videos help master lessons from the text? b. Who in your organization [current/past] plans how to optimize inputs and outputs? Why?

Discussion Question 3 a. Ch. 12/W2 defines important concepts for economics: short-run, long-run, accounting profit, economic profit, and others. b. Why in the short-run is the price of gasoline inelastic, but in the long-run elastic? c. Do you know anyone who complains about the price of gasoline [when it costs $300 a month] but they never complain about $550 a month car payments? d. What is the difference between accounting and economic profit? e. Why in economics is ‘profit maximization’ assumed? f. Would you rather work for a profitable company or one teetering on bankruptcy? Why?

Discussion Question 4 Read and engage with two others’ posts. 1. Why do some countries/states/cities have low employment, while others have high unemployment? 2. If you lived and worked near where companies were investing and hiring workers [use the GoodLife simulation, W2], what would happen to the real estate markets, both rentals and home purchasing? 3. Visit: Google GeoFred [or drop this into Google]:http://geofred.stlouisfed.org/#st=Unemployment+Rate&geom=state&cm=fractile&nob=5&cs=ylorbr&csr=false&ctp=true&etl=false&rec=true&rltf=false&bmt=&bmc=null&tag=All&sa=Seasonally+Adjusted,+Monthly,+Percent&fq=Monthly&dtn=Percent&dt=2012+May&sd=false&l%5Bstate%5D=1&l%5Bstate_lbl%5D=1&ex=-129.70207,22.518322,-62.007723,51.38562&zl= Which 3 states [use map and data] would rents and home prices be rising? 4. See Discussion / Course Materials, PPoint. (I will attach pwer point) a. Of the 7 slides, which is most surprising? b. Name the slide [use slide title], and why.

Assignment - Only about 300 words •How do the concepts of microeconomics help the team understand the factors that affect shifts in supply and demand on the equilibrium price and quantity? •Relating to the simulation, explain how the price elasticity of demand affects a consumer’s purchasing and the firm’s pricing strategy.More on This Topic.....