Vocabulary
a business that is owned by one individual, who makes all the business decisions, receives all of the profits or takes all of the losses of the firm
Sole Proprietorship
Fixed Cost - $10
Variable Cost - $14
What is my total cost?
$24
What is an example of a monopoly in Omaha, NE?
OPPD
MUD
What was one demand of labor unions?
Shorter/less hours
Higher wages
What did Ray Kroc list as his position on his business card at the end of the film?
The Founder
Firms use this to determine the amount of units produced that must be sold to breakeven with costs
Breakeven Analysis
How do you find total revenue (TR)?
What is the number of sellers within a monopolistic competition?
Many sellers
How do you know if someone is apart of the labor force? (2 pieces of information)
currently has a job or actively looking for one
What kind of corporation did Ray Kroc start to take over McDonalds from the brothers?
A real estate corporation
A work stoppage called by union members to put pressure on an employer
Strike
What is marginal revenue (MR) also known as?
Price
What are the four types of markets?
-Monopoly
-Monopolistic Competition
-Oligopoly
-Pure Competition
How do strikes help workers?
They put pressure on the employer to comply with the workers demands
What did the McDonalds brothers have to change the name of their store to?
The Big "M"
is the cost of producing an additional unit of a good—that is, the change in total cost that results from producing an additional unit of output
Marginal Cost
TC = $24
TR = $67
What is my profit?
$43
What is a oligopoly?
A market in which there are few sellers, high barriers to entry, price leadership instead of controls, and all products are the same or slightly different.
What is a labor union?
An organization of workers who band together to negotiate with employers as a group, aiming to improve wages, benefits, and working conditions for their members.
What was the main challenge that Ray faced when franchising McDonalds?
Maintaining standards
Single seller, sells one product without a substitute, high barriers for a business to enter the market
Monopoly
Evelyn is opening a day spa that focuses on pedicures. Her rent is $5000 a month and her equipment rental is $800 a month. She charges $50 per facial and has a variable cost of $13. What is her Breakeven Quantity? How many pedicures does she have to do to make a profit?
157 pedicures
In a monopolistic competition market, where are 5 businesses that I could go to find a glue stick?
Walmart, Target, Dollar Tree, Micheals, Hobby Lobby, ect.
How did the Labor Movement change America?
It changed how Americans worked, lived, and relaxed.
How was Ray Kroc able to open restaurants under the McDonalds name?
He franchised the firm by signing a contract with the McDonalds brothers.