Economics #2

Business firms are organizations that use resources to produce goods and services that are sold to consumers, other businesses, or the government. Mikey Powell and Casey Powell are two famous college lacrosse players that have a huge impact on the business firms. Business firms love these two people because the business firms use them to produce DVD's, lacrosse heads , lacrosse shafts, lacrosse gloves and more. One organization that is very well-known is Brine Inc.(a corporation is a legal entity that can conduct business in its own name in the same way that an individual does). Brine took these two players and had them produce there own head, shaft, and glove designs. As a result Brine made a large amount a money.

Other corporations are STX, Warrior, Gait/deBeer, and Harrow. Corporations are also owned be its stockholders. Stockholders are people who buy shares of stock in a corporation. A share of stock represents a claim on the assets of the corporation. Assets are anything of value to which the firm has a legal claim. An example of this could be a popular lacrosse head that people are buying. Corporation have advantages such as limited liability, which is a condition in which an owner of a business firm can lose only the amount he or she has invested in the firm. Other advantages are that corporations continue to exist even if one or more owners sell their shares or die and that corporations are usually able to raise large sums of money by selling stock. In a lacrosse corporation the board of directors would be thinking of a head people would want to buy. They would find a popular lacrosse player and ask if he or she would design a new head for them. The board of directors are an important decision-making body in a corporation. It decides corporate polices and goals, among other things.

Shirking is putting forth less than the agreed- to effort. This is seen quite often in lacrosse because once a play is a veteran on their team they don't feel they have to work as hard, since they made it this far. Most lacrosse businesses such as nickel City Sports is owned by one person this is called sole proprietorship, not a partnership which is where two people own a businesses.

A franchise is a contract by which a firm lets a person or group use its name and sell its goods and services. A franchise in the lacrosse world is Dick's Sporting Goods. The franchiser is the entity that offers the franchise. the person or group that buys the franchise is called the franchisee.

In the lacrosse market all expenses or costs are called variable cost. Variable cost is a cost or expense, that changes with the number of units of a good produced. The only way that change this can change is if the product on sale, and that is usually because the demand for the product and gone down, this is called fixed cost. Fixed cost is a cost or expense, that is the same no matter how many units of a good are produced. When you add fixed and variable costs it is converted to the total cost. Once the products are sold you divide the total cost by the quantity of the output and get the average total cost.