In this bid you will answer the 2 discussions differently. Don't mix the two questions together. Unit 8 DiscussionAssume that you are going to start a small business of your own.Describe the business and discuss the following:What costs you would incur;What competition you might experience;How you would determine the price you would sell your product; and,How much product you would produce?Note: These are all the question for unit 8 Discussion(you can answer all these question in one paragraph)Unit 9 DiscussionDescribe an example of a real-world industry or market that would be considered by economists to be a natural monopoly.What is the impact of the monopoly power on its customers?What characteristics of the industry make it a monopoly?Why might government want to regulate natural monopolies?How might such regulation be structured?

At the beginning of the year, a software developer quit his job and gave up a salary of $90,000 per year in order to start Turnip Tom’s organic farm.A partial income statement for the first year of operation for Turnip Tom’s, Inc., is shown below: Revenues $98,000 Operating costs and expenses Cost of products sold$15,500 Selling expenses$6,500 Administrative expenses$3,200 Total operating costs$25,200 Income from Operations$72,800 Interest expense (bank loan)$9,500 Legal expenses$1,200 Income taxes$22,000 Net income$ 40,100 To get started, Tom spent $125,000 of his own savings to purchase land and equipment to be used for the farm.During this year, Tom could have earned a 7 percent return by investing in stocks of other business with risk levels similar to his farm. (a)What are the total explicit, total implicit, and total economic costs for the year? (b)What is accounting profit? (c)What is economic profit? (d)Using only the data given, would you say that the owner made a good economic decision to leave is job to start theorganic farm?Explain. Explain why it would cost Rafael Nadal or Venus Williams more to leave the professional tennis tour and open a tennis shop than it would for the coach of a university tennis team to do so.Be sure to use the concepts of implicit cost, opportunity cost, and economic cost in your explanation. An article in The Wall Street Journal discusses a trend among some large U.S. corporations to base the compensation of outside members of their boards of directors partly on the performance of the corporation. "This growing practice more closely aligns the director to the company. [Some] companies link certain stock or stock-option grants for directors to improved financial performance, using a measure such as annual return on equity." (a) How would such a linkage tend to reduce the agency problem between managers and shareholders as a whole? (b) Why could directors be more efficient than shareholders at improving managerial performance and changing their incentives? (c) How does the concept of moral hazard apply to this situation and what policies can be put in place to mitigate it?

Free markets generally lead to the greatest amount of combined producer and consumer surplus. Identify a good commonly purchased at a grocery store. Explain how a price change affects consumer surplus and producer surplus. Explain what would happen to producer and consumer surplus if the price were other than the market price.