Assignment: The Business Environment
Objectives
• Identify the factors of production in an economic system
• Define the various degrees of competition in a free enterprise system
• Explain the concept of supply and demand
• Explain emerging challenges and opportunities related to the U.S. business environment
Assignment Overview
This assignment explores the evolution of American business, factors of supply and demand, the six types of business environments, and the four degrees of competition.
Instructions: Complete the following activities and submit as directed by your instructor.
1. In a visual way, develop a timeline of the evolution of business in the United States.
• You may be creative in this, but you must be able to submit your timeline electronically (in a Microsoft Office or other application).
• For each era in the evolution of business, list at least two ways we have improved the way people do business now as compared with the previous era.
2. Select a business that you might be interested in starting at some point in your future career.
• Describe the business in one or two sentences.
• Describe the five factors of production for this business that are required for this business's success. Limit your answers to one or two sentences for each factor.
• Discuss briefly your thoughts about the potential supply and demand for your goods or services of this business.
o What factors will increase demand?
o What factors will decrease demand?
o What factors will increase supply?
o What factors will decrease supply?
3. For each of the six business environments, identify at least one potential problem that your business may face. Explain this problem in one or two sentences.
4. Complete the following table by identifying a specific business example and completing the remainder of the table. Do not use any example that was presented in the textbook.
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Characteristic
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Perfect Competition
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Monopolistic Competition
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Oligopoly
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Monopoly
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Business Example
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Number of competitors
(many, few, none, etc.)
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Ease of industry into industry (easy - provide a brief explanation)
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Similarity of goods or services offered by competing firms (identical, similar, or provide explanation)
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Level of control over price by individual firms (none, some, considerable, high)
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