1. Aim: How do monopoly, competition and profit affect the U. S
Aim: How do monopoly, competition and profit affect the U.S. economic system?
DO NOW:
What happens if a store doesn’t sell a product you want?
Why do we want students to take elective classes?

2. Economic System
is a mechanism which deals with the production, distribution, and consumption of goods and services in a society.

3. More about the U.S. Economic System
Free Enterprise System (Capitalism)
People make their own business decisions
Work at any job they wish
Buy any product they choose
Purchase buildings and property
Start a business of their choice
Spend money any way you wish

4. More about the U.S. Economic System
People have choices!
Monopolies are not allowed!
Monopoly: one business that does not have any competition
*LIPA (Long Island Power Authority) is a monopoly but is closely monitored by government
Competition: battle between businesses for the same customer

5. Goal of a business Profit- money left over after expenses are paid
Types of expenses
Production costs- items the business buys to make the product
Example- company needs milk, sugar, chocolate and vanilla beans to make ice cream
Overhead Expenses- items needed to run the business but not part of the final product
Example- rent, salaries, electricity bill, phone bill

6. What do you need for your business?
Choose a type of business to own.
What is the name of your business?
List production costs for your business:
List overhead expenses necessary to run your business:
Who is your biggest competitor? Why can’t you have a monopoly?