Situation A
Jenny , your niece , is a smart high-school student who wants to make intelligent choices for her future . Hearing of your course in business economics , she has e-mailed you asking for advice on whether to become a doctor and on the best location to practice it . She recognizes the high costs of tuition and the years of study involved in becoming a doctor . She wants to evaluate if that career choice is an optimal decision for her , so she has asked you for advice .
Having read the piece “ Fewer Physicians Move , a Sign of Career Caution ” on page 20 of the textbook , you recognize the significance of such a career decision for Jenny . You decide to educate yourself about the market for physicians in terms of supply and demand , elasticity , costs of production , pricing , and economic or normal profit or loss . You want to provide Jenny with the most informed advice possible .
Situation B
Your neighbor Cindy wants to start a contracting business for installing solar panels . She has heard of the cost savings that households and businesses can make each year by installing solar panels on their roofs . Cindy has also heard of government incentives for installing solar panels . Being concerned about the environment and wishing to reduce pollution , Cindy thinks installing solar panels also serves a good social purpose . But she does not want to risk her life savings on a venture that might not succeed or become profitable enough . After hearing from you about taking this course in business economics , she decides to ask you for advice .
At first you are hesitant to give investment advice . Then you read the piece “ US boosts ‘ game-changer ’ solar technology in bid for global market share ” on page 374 of the textbook . You realize there are more