Chapter 9 Application - Costs and Production

1.Think of a product or service you will provide in your profession. Discuss what costs would be fixed and which ones would be variable.

2.Restaurants in many towns including Rexburg come and go. Why would a business decide to shut down even if it was making an accounting profit?

3.Can it be possible for a store to be too big?Explain why or why not.

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4.Explain why videos that cost $50 to $200 million, such as those produced by Pixar, cost as little as $20 to $30 to purchase while educational videos that cost less than one million to produce sell for $500 to $1,000 each.

5.Report on the stock that you picked. Give the current price and discuss what factors have caused the price to change.