Business & Finance Revenue Profits and Price Crash Course Economics Video Discussion DISCUSSION POST MUST BE 10+ SENTENCES AND THE PEER REVIEWS MUST BE 7+ SENTENCES PLEASE USE YOUR OWN WORDS AND DO NOT COPY FROM OTHER SITES STAY ON TOPIC ,BE POSITIVE , AND DO NOT COMMENT ON GRAMMAR ERRORS. TALK DIRECTLY TO CLASSMATES IN PEER REVIEWS!!! YOU MUST COMPLETE BOTH PEER REVIEWS AND DISCUSSION QUESTION!! THANK YOU 1) DISCUSSION QUESTION “Looking Closely at Cost and Competition”
Watch this video, Revenue, Profits, and Price: Crash Course Economics #24, to help you prepare for this week’s discussion.
Reply to the following prompts by using the company for which you currently work, a business with which you’re familiar, or the dream business you want to start: Do you think it’s easy for your selected business to enter this same industry? What are some key fixed, variable, implicit, and/or opportunity costs? Discuss with your peers: Read one of your peer’s posts and share another idea for a type of cost. 2) PEER REVIEW #1 (MATTHEW) Hi class!
I currently work for the Small Business Administration, I work in the contracting office. We purchase everything the SBA needs nationwide, from computers and office supplies, furniture, IT services and licenses, grounds maintenance contracts, and small construction projects. My wife and I have thought a lot about starting our own business from the other side, form a small staffing company for IT help desk and IT maintenance workers and try to do business with the government. I know the ins and outs of government contracts, Ive been doing it for 17 years. I know what Contracting Officers look for in proposals and how to create highly competitive rates that will hopefully win us a lot of contracts. I think it would be very possible to open up a business of our own and be successful. There are thousands of government contracting officers across the globe, and the good thing about IT service contractors is that most of them work remotely. So once we are able to find qualified individuals to fill positions, we can bid on requirements worldwide and not have to travel anywhere doing so.
Some fixed costs would be what my wife pay ourselves and any salaried employees that handle HR and payroll. Those amounts won’t ever really change. Some variable costs would be the rates we pay employees for certain projects. Depending on what is demanded in the statement of requirements from the government, what we pay our employees will fluctuate. Some implicit costs would be paying for any travel and hotel costs for myself when I travel to certain locations if the government requires a sit down face to face visit before the contract starts. Overall, i think we would be able to flourish in this industry as most federal agencies are still transitioning to paperless and there is a big need for IT services, licenses, support, and maintenance. 3) PEER REVIEW #2 (ALLISON) Do you think it’s easy for your selected business to enter this same industry? Let me start by saying I work for a cable company. The industry for cable has changed with its technology and products over the last few years. It’s grown from cable, to cable and phone, to cable, phone and internet. We do see a lot of over the top competitors. Unfortunately, I believe it is difficult for competitors to be able to enter this industry. I work in the field every day and the number one complaint I always receive is “I wish I kept your product, but it so expensive.” The truth is, while it does cost a small fortune, you are really getting the best products and services for your price. My company has changed the way we’ve done business. We now offer “ala cart”. You can pick and choose what channels and high speed internet you want, and make it fit into your budget. What are some key fixed, variable, implicit, and/or opportunity costs? There are multiple fixed rate within my business. These fees include, broadcast fee, regional sports fee, and installation fees. When you agree to a higher package, most, if not all, of the installation fees can be waived. This would be an opportunity cost. The reason is, waiving a one time fee of $100.00, provides great customer service. The reality is, the company will recuperate its costs when an average bill is typically 200 dollars or more. “Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results.”