Q. 1. Small mistakes are stepping stones to large failures. How might this saying apply to this lesson and do you agree? In your responses, provide an example of a seemingly small mistake with large consequences. 3. Why is knowing (or estimating) product demand so crucial for a firm? In your response, include an example of a business that has suffered from poorly estimating demand of its products. Evaluate how or why business made such a mistake.

2. Honda uses flexible plants in manufacturing of its cars. Discuss where this method of production results in optimum output.

3. Discuss where economies of scale have any relevance to such companies as Wal-Mart.

4. In hope of high returns, venture capitalists provide funds to finance new (start up) companies. However, potential competitors and structures of market into which new firm enters are extremely important in realization of profits. Among different market structures, which one do you believe provides highest possible return for a new company and why?