Chapter 2 By: Ashton Maass

Resources

Resources are very important to grow capital. Human resources are the people who create the goods or services you sell. Capital Resources are the things invested to produce the goods you sell. All economic resources have a limited supply.

The Role of Entrepreneurs

Entrepreneurs must play into the supply and demand aspect so they can make more money and satisfy the consumers needs. Entrepreneurs also play a very important role in job creation and capital investment.

Economic Systems

Entrepreneurs must decide how they want to address economic systems. Many different systems exist and sometimes making a product more or less expensive is the smarter choice. Market economy is how the entrepreneurs choose to sell their product and Traditional economy is sold to nearby communities and produced the way they always have been. As a U.S. citizen you can decide how you want to run your business within reason. Much of the time the community has a mixed economy.

Economic Choices

Their are lots of risks with business ownership. In every community there are limited resources and unlimited needs. That issue is called scarcity. Competition is another factor to consider when operating a business. When trying to solve the consumers needs the opportunity's cost is an economic decision you may have to make. In a business you will need to address production, marketing, management and finance. these are the heart of your business and may decide if you succeed or fail.

Price

Many factors effect price such as The supply and demand of the product,scarcity of the product. Variable costs are costs that go up and down based on the supply and demand and the quantity of the items . Perfect competition is when there are businesses trying to sell similar products and the market is well informed on the prices. Monopolistic competition has businesses that sell very different products for the same problem. Also called The Competitive Market. Oligopoly is when the market is dominated by small businesses that sell similar goods and have influence over the price of the item. A Monopoly is when there is only one business that sells the product and can sell for any price that they desire with nearly no competition.

Created By
Ashton Maass
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Created with images by Pexels - "blur bronze coins" • MichaelGaida - "shopping cart shopping supermarket" • jill111 - "winter barn snow rural" • frankieleon - "Got something to say?" • Addison Place at Boca Raton - "Community" • MichaelGaida - "gas pump petrol stations petrol"

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