Procedure:
1. Create a new invention (it could be anything!)
2. Determine what the opportunity cost is for you to create this product and create a production possibilities curve demonstrating this.
3. Design a business to sell your product. What sort of business is it (sole proprietorship, partnership, competition)? Why? What sort of competition will your business demonstrate? How do you know?
4. Create a circular flow diagram and place yourself and your business into the diagram.
5. How does comparative advantage fit into your business set up? Explain!
6. Create a supply and demand curve for your product (make up the price and quantity figures). How does each of the determinants affect the sale of your product?
7. When could a surplus or a shortage appear for your product? Why would it occur? How would this affect the sale of your product? Demonstrate in a curve
8. Would the government impose a price ceiling or a price floor? Why or why not? How would this affect the sale of your product? Demonstrate in a curve
9. What is the supply and demand elasticity of your product? How do each of the determinants relate to the elasticity of your product?
10. Create a production function for your product (determine what the variable input will be). Label the three types of returns.
11. Create a chart and a graph demonstrating the marginal product and average product of the invention (determine your own numbers!).
12. Determine what the fixed cost, variable cost and total cost will be. Place these in a chart along with the marginal cost and average cost.
13. Create a graph including all of the above cost curves.
Product:
1. All of the following questions need to be fully completed and placed in a report (not a question/answer sheet!).
2. All charts and graphs must also be placed in the report and placed on a presentation board
3. A "prototype" or description of your invention needs to be displayed on your presentation board.
4. Presentation board should include name of business/invention and anything else that will give consumers information about your invention and encourage them to purchase it!
5. Student will give a ten minute well prepared presentation on their business/invention