Question

• Opportunity Cost, Scarcity, Production Efficiency, Allocative Efficiency, Human Capital, Specialization, Comparative Advantage, Income, Tastes, Prices, Household Budget, Information, Transaction Costs, Utility, Consumer Satisfaction, Profits, Markets, Competition, Market Structure, Labor Costs, Innovation, Entrepreneurial ability, Productivity, Government Regulations, Business Incentives, Economies of Scale, Product Differentiation, Brand Name, Advertising, Market Power

General Instructions:

Choose one concept from the list above, and write a paper a 500 to 550 word paper (500 words, is the absolute minimum) in which you state a response to the following prompt;

"Before completing all 5 Graded Discussions I thought about (one of the concepts from the list) in this way ..., now I think ... ".  

You are free to organize and arrange your sentences and paragraphs in any you see fit, but your response MUST at least have the following 5 elements:

• It must state and define the concept or idea.

• It must explain how you viewed or understood the concept before completing the discussions.

• It must explain your new way of viewing, or understanding the concept.

• It must say the reason why your perspective, or understanding changed. In other words, what did you do, see, or hear as a result of completing the discussions that helped transform your opinion.

• It must have information, data or facts, that supports the reason for your change. The information, data or facts can be presented in the form of an example, or as part of an explanation, but it must be explicitly connected to at least one of the graded discussions.

As you produce your response, you should also consider the following:

• The implications of the change in perspective. In other words, now that you see this in this way, what are some of the things that will come after? What will you do differently? What follows? Also, analogies and metaphors are a great way to illustrate how one views a concept or an idea.

Answer 1

"Before completing all 5 Graded Discussions I thought about (profits) in this way. Every entrepreneur dreams of making profit. Profit making is the basic thought of every business man. I thought it was the only motive of every business. Non profit organisations such as hospitals, clubs, schools etc were setup to provide services to the public. The never aimed at earning profits before but now I think that the only motive of such institutions are to make profits. Hospitals and schools now a days function to drain the pockets of the citizens.

Profits is the difference between the amount earned and the amount spent. It is not a narrow concept. It has wider scopes. Profits should be made without losing the ethical standards of the company or business. It drives businesses to come up with creative new products and services with the help of the employees. There are more concepts of profits such as profit maximization which is a process by which a firm the input and output levels that leads to the highest profit.

There are different types of profits such as gross profits, net profits, operating profit etc. Basically profit is the surplus of income over expenditure.

The formula for profit = selling price - cost price or Revenue - Costs

It is not certain that every business will earn profit. There is risk involved in every business. risks can be minimized but it cannot be eliminated.

There are several causes which give rise to profit, but the real cause is uncertainty ".