Competencies

In this project, you will demonstrate your mastery of the following competencies:

• Inform business decisions using microeconomic models and theories
• Determine the impact of economic costs on organizational and individual decision making
• Explain how market structure impacts a business's entry and exit into a market and its ability to generate economic profit

Scenario

You and your friend from college have just graduated. You majored in business, and your friend majored in a creative field. Your friend is highly inventive and has come up with an excellent idea for a new product. You both believe in this idea so much that you have agreed to become business partners. However, before you embark on your entrepreneurial adventure, you will have to explain some key microeconomics concepts to your partner that are important to make sound business decisions.

Your business partner is less than enthusiastic about this prospect and has never had an interest in what is often described as the dry and boring field of economics. Every time you have tried to engage your partner in practical discussions, they brush you off and decide to go play video games instead.