Content Standard 1: – Students will be able to use their economic knowledge to understand the basics behind decision making that corresponds with business.Profit is an important incentive that leads entrepreneurs to accept the risks of business failure. From Content Standard 14: – Entrepreneurs are people who take the risks of organizing productive resources to make goods and services.From Content Standard 2: – Effective decision making requires comparing the additional costs of alternatives with the additional benefits.Supply and Demand Graph: The visual representation of the supply and demand for a firm's production.Ĭontent Standards From National Content Standards in Economics:.Diminishing Returns: by adding more of one factor to the overall production of a product or service will eventually lead to a decrease in output and therefore a decrease in profit.Cost: The value or price necessary to produce something.Revenue: Income that a business receives through business activity.Overhead: An ongoing expense that businesses and firms experience throughout production.Profit: Difference between a firm's total revenue and total costs.Demand: The desire to own a product and also having the willingness to pay.Supply: The amount of some product which is available to customers.Thus, through running a mock business, students will be able to apply their basic understandings of economic principals to their business venture. Businesses must delegate how many hours they will operate, how many people they will employ, and how they will utilize their resources and capital. The overhead that businesses experience can also cause a decrease in both short-term and long-term returns. The law of diminishing returns states that by adding more of one factor to the overall production of a product or service will eventually lead to a decrease in output and therefore a decrease in profit. During the buying and selling process, different economic components could thwart the producers ending profit. Through decision-making, the business owner will have to assign a certain amount of employees to work, determine a set wage, and factor in the overhead that their facilities and capital create. How does a producer know how much to produce and sell to the consumer? How much is the consumer willing to pay for a product? What components will either hinder or benefit a product's chances of being purchased? Every business must take into account the different costs that they will experience throughout the production process. A business owner must understand the basics of supply and demand, as well as how to make a profit. Running a business involves very important economic components and decisionmaking skills. The Economics of a Lemonade Stand A Lesson on the Basic Economic Principles behind Business Youth Transition Specialist working with middle school and high school aged students.Former Minnesota State University Mankato student.Be sure you have the latest version!!!!.While Java is used everywhere (except Apple products) there are potential problems.Do we ignore the principles when the game has prefect sounds and lifelike images?.3 Decisions – How many glasses to make – How many signs to make – What is the price.From right here in Minnesota all others are copies or modifications.– Buy cups, lemons, sugar, and ice – Ice melts at the end of the day – Can set price, lemons per pitcher, sugar per pitcher, and ice per pitcher-can change price again after you open – Temperature and weather forecast.Lemonade Stand A K through 12 Economics Experience
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