1. Bell Ringer 12/8
What entrepreneurial experiences have you had (examples: lemonade stand, mowing lawns, babysitting, etc.)?
What materials or supplies did you need before you could operate your business?

2. The Invention Convention

3. Introduction
In a market system, economic decisions are made in the marketplace through the interactions of producers and consumers
Businesses will produce and sell goods that consumers want
Businesses must buy the “factors of production” such as labor and capital goods in order to produce the goods
Profit = total revenue – total cost
Total cost= price of input x total number produced
Total revenue= selling price x how many sold

4. You will be…
Working in small groups to create and produce a new product that you think other members of your class would like to purchase
You must decide which inputs you will purchase
You will calculate your costs of production
You will create your product
You will see how many units you can “sell” to the class
You will calculate the profit or loss for your firm and compare with the rest of the class
The firm that earns the most profit will get a prize

5. Calculating Costs of Production
Company Name
Invention Name
Mrs. Golledge’s Sweat Shop
Funtabulous Noise Maker 1. 2. 3. 4.
Resource
Resource Price per Unit
Number of Units Used
Total Resource Cost (column 2 x column 3)
Rent
$0.75 1
Labor
$0.25 3
Paper Clip 2
$0.50
Rubber Band
Plastic Cup
Paper
Pen
Invention Cost (cost of producing one unit)
$3.25

6. 1. 2. 3. 4. 5.
Invention Name
Quantity Sold
Total Revenue
Total Cost
Profit/Loss