Team Refelction

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Week Two Team Reflection Louis Blackshear, LaQthia Cooks, Jennifer DeWitt, Lisa Mariella, Tharthur Myers Economics ECO/561 Version 7 Ron Merchant September 10, 2012 Week Two Team Reflection Simplicity is achieved and true knowledge of business practices are obtained through the rigors of understanding terms and concepts such as: production levels, cost maximization, fixed and variable costs, opportunity costs, revenue and total costs curves, etc. These terms not only provide a basis for business operation, they also provide a competitive edge for the determined entrepreneur who seeks to understand the anatomy of business and its language. In hindsight, week two discussed many of the terms above and allowed team…show more content…
Lisa noted that when both curves were straightened to make a line, the point at which both lines intersected was the breakeven point. Everything above this intersection represents the profit margin. Business managers can use this quick analysis to make educated economic decisions. Sunk Cost The Sunk Cost video required significant thought as far as understanding the concept of realizing loss in a project or an endeavor. It demonstrated that once one has made a decision to pursue a project that doesn’t yield the desired outcome, it is not beneficial to waste time sulking about the loss but rather, one should move on to one that is more likely to be successful at achieving the desired results. Team “B” members stated that often emotional attachment is tied to a specific endeavor and sometimes becomes the driving force behind the commitment to see things through. However, LaQthia provided an anecdote from a previous place of employment where she demonstrated that sunk cost actually diminishes profits and that it’s better to move forward with better choices rather than seeing a sunk cost through to completion. Production Possibilities Production possibilities are very important to consider. Jennifer struggled with one of the critical business pieces of understanding that the production possibility curve displays the tradeoffs a company would need to

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