thinking at the margin

5 people in the class will be selected to play the role of the manager. Managers will have 10 minutes to decide which good or service they wish to sell; how much it will cost to produce the good/service; and how much they wish to sell their good/service. Managers have an initial investment of $10,000 to get their business of the ground. The rest of the class will be given a payment of $200 to participate in the classroom marketplace as consumers. Managers may also hire consumers to increase their workforce. Hired employees may still purchase goods in the market. In order to win the game businesses must sell their products or services during 7 rounds of the game. The business that gains the most profit wins the game. Managers must price their products, track their costs of production, which includes both paying employees $100 after each round. ROUND 1: Marginal Product Labor­ ​
Managers must hire a worker a pay at least $100 in wages, the employee may negotiate for more. ROUND 2: Increasing MPL­ ​
Manager must hire two more people ROUND 3: Increasing Costs of Production­ ​
Hire two more people and offer pay raise to employees from Round 1 and 2. Round 4: Diminishing MPL­ ​
Manager must fire 1 employee to reduce production costs. ROUND 5: Production Cost­ ​
Manager must invest in supplies to help meet demand for their good or service. They must add these supplies to their variable costs. ROUND 6: Calculating Costs:​
What are your fixed cost and variable costs of running your business and maintaining your product? YOU'VE BEEN IN BUSINESS FOR A YEAR! NOW, YOU WANT TO EXPAND BUT IT WILL COST YOU MONEY THOUGH !!! ROUND 7: Calculating Profit­ ​
Using your fixed costs and variable costs, determine how much have you made throughout the year. END: Are You In Debt OR Are You successful? PRICE OF MONEY TOOLS TO SPENT FOR MAKE YOUR EMPLOYMENT OWN DESIGN TOTAL AMOUNT LEFT AFTER ALL PAYMENTS ARE DUE R1 R2 R3 R4 R5 R6 R7 BUSINESS STATEMENT