Blog #6 - Standard M14 Forms of Businesses; Businesses characteristics of monopoly; oligopoly; monopolistic competition; pure competition

Entrepreneurship interview guide (**End with a personal reflection about your own thoughts about the business and the business owner)

1. Name of entrepreneur/Name of entrepreneur's business/complete address (including zip code)
Alfie Baugh

Clean Cutz

1815 Austin Dr
Decatur, GA 30032-4800

2. Type of business organization

Salon and barber shop
3. Length of time the business has been in operation
The business was opened in 2007

4. List products provided by the business (goods and/or services)

• Food
• Coffee
• Hair products
• Television

5. Number of employees/skills needed to work in the business

8 employees

Skills- cut or style hair
6. List benefits of business to community/What does this business provide that similar businesses don’t provide
Benefits- Having a hair shop close to home,cheap prices,flexable times

Provides- Family environment,free donuts on sundays

7. Major competitor for this business and how this business remains competitive

The shop competitor is this shop half a mile away and Clean Cutz remains competitve by having comunity events at the shop and matching or lowering prices

8. Describe methods used to increase growth of business and any future plans for expansion

They method they use to increase growth is alot of advertising and events. The shop have plans to open another location Old National

9. Three greatest challenges in operating the business

• Locatin, because its alot of shops in decutar
• Workers Commission, So workers dont note all their customers and keep all money
• Break ins, The shop has been broken into two times

10. Three greatest rewards in operating the business

• Profit, the shop has great business
• Connection, you meet alot of people who could be useful for the shop
• Expansion, the shop will be able to grow

Sample Script: Hello, my name is __Maurice McMillian____________and I’m a student in an Economics course at South Atlanta HMS. We’re studying the three types of businesses and we have to interview a business owner in the community to learn something about owning a business. Would you mind answering a few questions for me about your business so that I can share this information with my class….Closing: Thank you very much for taking the time to speak with me.

Reflection

This interview gave me a new outlook on the hair industry. I gained more respect for the shops and learned theres alot more that go into running a shop other than just collecting booth rent. You have to know how to handle money and people , and know how to make rational decisions that will better the business then and in the long run. Alfie Baugh was very informative and is a very smart business owner. She had everything mapped out and was planning future events for the shops to increase business flow. The business is doing great and is rapidly increasing as a whole, I see Clean Cutz as being a mini corporation. I predict that this business will be around mini years to come.

Assignment #5

Using the typical 'Face book' lingo, write a definition for Microeconomics and then provide a Standard English translation for your 'Face book' definition.

¨      The study of economics behavior and decision making of small units such as, households, individuals, families and businesses.

Title:  Role of Money - M11

1. Using what you learned about the three functions of money, explain how 'play money' differs from 'real' money?

¨       They differ because real money has a unit of account and medium of exchange.
2.  Money has no actual value other than the value we attach to it. The barter system would still be practiced today if the participants did not agree to set a value on a piece of printed paper that represented the value of the goods and services they had to offer.  What would you accept in place of money, if someone wanted to 'buy' you’re most prized material possession? 

¨       I would accept a lifetime supply of food, protection, housing, and more for my family now and when I get older and past away.

Circular Flow Model - M11

1.  What does a circular flow model tell us?

¨       Tell us how the flow of money goes.
2.  What is the role of households in the three sector circular flow model?

¨       To pay taxes, provide labor and buy goods and services from businesses.
3.  What is the role of businesses in the three sector circular flow model?

¨       To pay taxes, supply goods, give income.

4.  What is the role of government in the three sector circular flow model?

¨       To give income to the households and payments to the businesses in exchange for goods.
5.  What role do households have in the factors or resource market (inputs)?

¨       They pay taxes to the government and payments to businesses.

Title:  Law of Demand and Law of Supply - M12

1.  For each event described below, explain what happens to either the demand or supply curve. Increase/decrease?  Shifts left or right?)

(a)  What happens to the demand for chicken if concerns about mad cow disease lead to widespread euthanizing of cows on U.S. cattle farms?

¨      The demand curve will shift left.

(b) What happens to the supply of orange juice if Florida is hit with very severe weather?

¨      The supply curve will shift left.
(c) In the market for coffee, severe global weather systems destroy 30% of the coffee bean crop.

¨      The curve will shift leftward.

(d) In the market for cereal, if the price of cardboard material used to package cereal increases.

¨      The curve will shift to the left.


2. For each part below, EXPLAIN what happens to equilibrium quantity and price (increase or decrease?).

a)  In the market for doughnuts, if they were found to be a major contributor to high cholesterol in adults.

¨       The equilibrium and price will decrease causing the curve to shift left.
b)  In the market for doughnuts, if widespread unemployment continues.

¨       The equilibrium will shift to the left.c) In the market for doughnuts, if Krispy Kreme introduces a new whole wheat 'low-calorie' doughnut.

¨       The equilibrium and price will increase.
3.  What are two factors that can change the quantity demanded?  Provide an example for each.

¨       Income changes- people are getting less money.

¨       Available Substitutes- another product can replace it.

4.  What are two factors that can change the quantity supplied?  Provide an example for each.

¨       Buyer Income- buyers can start to get less money.

Advance in technology- buy things to help produce goods at a greater pace.