Read Matthew 13:3-23

1. Discuss your understanding of economics in relation to this parable.
2. Compare and contrast the concepts of production in the context of the parable in Matthew 13:3-23

Imagine that you have invested $1 million in a McDonald's franchise restaurant. The investment includes expenses for land, buildings, and franchise fees.

1. Discuss the explicit costs and implicit costs of this franchise operation.

2. Predict how the output of your franchise will change as you hire more labor.

3. Discuss how you would respond to the higher labor costs when the minimum wage has raised your franchise's labor costs.

Respond to the discussions below

Discussion 1

Discuss the explicit costs and implicit costs of this franchise operation.

The explicit costs would be the money invested in the franchise and building, it will include the equipment, food, utility, and labor cost. The implicit coats would be changes in product offerings, such as all-day lunch, or participation in limited-time offerings and promotional offers. And implicit cost occurs when the owner steps in to help the employees, Implicit cost is associated with changes during the operational of the business.

Predict how the output of your franchise will change as you hire more labor.

The output of my franchise will change as I hire more labor in that there will be increased output for my business. I will expect to see an increasing marginal return. The addiction labor will enable employees to focus on fewer things and increase their production. If we move the drive through lines quicker, we will get more business because traffic is more likely to stop and people in the drive through are less likely to drive off. I will also be able to better maintain our location by keeping it cleaner, which would encourage people to dine in as well. More labor means, less stress for my employees and increase job satisfaction.

Discuss how you would respond to the higher labor costs when the minimum wage has raised your franchise's labor costs.

If I had a higher labor cost in minimum wage, I would think about optimizing the labor by cutting some shift short and moving people around busier periods. To meet margin, the labor would have to be used more strategically and efficiently. In addition, I will pursue ordering Kiosks to replace few employees and maybe we will have to cut some hours. To sum up, with my low cost, volume-oriented product, the employee loses overall.

Discussion 2

1. Discuss the explicit costs and implicit costs of this franchise operation. -when you think of the term explicit calls it mainly incorporates what was put into the building in the production of goods to make it what it is. For instants an expensive car would be money down towards building the foundation or buying the land or property. This would be considered things that is given to people because they know these are the necessary steps to make things move in the right direction of building your brand. When it comes to implicit it cost it merely just states whatever assets you have you utilize those in the verge of making progression without having to sell use or even buy something else to do it. With this people tend to use their own money versus going out to purchase or borrow from other resources to make things or to move things the way they need to without having to cut down on stuff or in other words downgrade on the plan.

1. Predict how the output of your franchise will change as you hire more labor. - I would predict that the franchise could grow tremendously because the groundbreaking is one of the hardest positions that people get in to get the building up and running in order to get things moving. You would be able to not only hire more labor because more people are going to be willing to work in a new establishment and get it up to par or up to code versus wanting to work somewhere that's already sustainable and merrily full-on labor. You can say different marketing strategies different payroll ranges and also be able to start from Fresh and see what things didn't work in the past and make the work better for the future.

1. Discuss how you would respond to the higher labor costs when the minimum wage has raised your franchise's labor costs. - The only way to respond to higher labor calls is to constantly remind people that the world is constantly changing which means labor cause is constantly changing from rising to falling which would also means that minimal wage has to rise as well. It's only right to boost wages when LABOR gets higher because you want to keep not only the labor in control but also your employees in control and making sure that they're able to continue to do the job at hand in being paid to the best ability that works for them you in the company. It should be a clear-cut understanding from the date of hire that these instances can either rise your paycheck or file your paycheck so that everybody is on the same page that way there would never be any discrepancy with what's going on with the franchise. It will just make it easier to adapt to the change but also making sure it's suitable for everyone around the board because that will keep employees around in your business will continue to grow at a steady pace.