1. You have the choice of opening your own business or being employed by someone else in a similar type of business. List 4 considerations in terms of opportunity costs that you would have to consider before arriving at your decision? Briefly discuss.

2. As the CEO of a corporation it is important for you to understand the mechanics of supply and demand both in the short run and the long run. Give 3 examples of a company whose business was either helped or hurt because of supply or demand in the marketplace where they were competing?

3. The craft unions (electricians, carpenters) possess considerable power to raise wages than do industrial unions (automotive workers, steel workers, etc.) How would you explain this in terms of demand elasticity?

4. You have been asked to produce a forecast for your company's new product (bottled water). List and briefly discuss 4 factors you would consider before giving the forecast?

5. As CEO you decide you should take advantage of "economies of scale" by increasing your output, thereby spreading out your overhead costs. Do you agree with the CEO? Briefly explain the + and - of this statement?