Surviving and Thriving through Economic Downturns

M2.2 Discussion: Surviving and Thriving through Economic Downturns

This discussion connects the marginal cost and benefit calculations of individual consumers, firms, and governments to their effects on prices and available quantities of goods and services sold in competitive markets.

Case Study

Please click on the image to see the case study.

Transcripts for the Case Study

Review the Case Background and assigned reading for Modules 1 and 2, consider the conditions that led to the success of your firm relative to competitors. Consider activities of the local community that could affect your firm’s success in the future. For the purposes of your response, you may also wish to consider a supply and demand framework similar to those used in “Introduction to Supply and Demand” and “Externalities” (McGraw Hill resources assigned in this module).

Initial Post

Take the perspective of the owner of “Ready Garden” and discuss:

• One condition raising producer surplus, or the difference between the actual price the firm receives and the minimum price that a consumer would have to pay the producer to make each unit of output available.
• One strategy the firm could use to increase its chances of future success.

(Hint: You are encouraged to review pp. 77-80 as you prepare