Social studies lesson on the topic “The Firm in Economics. Firms in Economics

The employment rate of the working-age population in the former USSR at the end of the 80s was one of the highest in the world: it rose to 95%. Due to

with this answer the following questions:

1) What does a high level of employment indicate - a low or high level of economic development?

2) Can there be unemployment with a high level of employment? If so, in what form - explicit or implicit?

3) It is known that employment growth in the 80s occurred due to the involvement of women in production. Did this have a positive or negative effect on the birth rate?

.You are the head of a company producing soft drinks. In winter, the demand for your products temporarily decreases, what measures will you take to reduce production?

rzhek production - all your actions to save production?

Part C.

Taxes appear with the emergence of the state, since they represent the main source of state revenue. The state must have the means to perform its functions, the main of which are:

Determination of the rules for conducting economic activity “rules of the game” (antitrust legislation, supporting the development of the private sector of the economy, protecting property rights, protecting freedom of competition, protecting consumer rights, etc.);

Maintaining economic stability (fighting inflation and unemployment, ensuring economic growth);

Production of public goods (ensuring security, law and order, education, healthcare, development of fundamental science);

Social policy (social security for the poor through income redistribution, payment of pensions, scholarships, unemployment benefits, etc.)

With negative external effects (environmental policy, etc.).
The means to pay for government expenses are, first of all, taxes. Since the services of the state (which, of course, cannot be provided free of charge) are used by all members of society, the state collects fees for these services from all citizens of the country. Thus, taxes are the main instrument for redistributing income among members of society and are aimed at reducing income inequality.

The tax system includes:

Subject of taxation (who must pay tax)

Object of taxation (what is taxed)

Tax rates (the percentage at which the tax amount is calculated) The amount at which tax is paid is called the tax base.

The principles of taxation were formulated by A. Smith in his great work “An Inquiry into the Nature and Causes of the Wealth of Nations,” published in 1776. According to Smith, the tax system should be:

Fair (it should not enrich the rich and make the poor poor);

Understandable (the taxpayer must know why he pays this or that tax and why he pays it);

Convenient (taxes should be collected when and in a manner that is convenient for the taxpayer, not the taxpayer)

Inexpensive (the amount of tax revenue must significantly exceed the cost of collecting taxes).

The modern tax system is based on the principles of fairness and efficiency. The tax system must ensure the efficient distribution and use of resources at the micro level (individual producer level). Equity should be vertical (meaning that people with different incomes should pay unequal taxes) and horizontal (meaning that people with equal incomes should pay equal taxes).

C2.What elements does the tax system include? Illustrate the operation of the tax system with an example.

C3. Describe any three principles of taxation discussed in the text.

Social studies lesson on the topic “The Firm in Economics”

Purpose: to consider the basic principles of a company’s activities in economics.

Subject: social studies.

Date: "____" ____.20___

I.State the topic and purpose of the lesson.

II. Presentation (with elements of conversation) of program material.

Why do some companies succeed while others go bankrupt? Is it profitable to produce everything? Are there any recipes for bankruptcy? Can unprofitable enterprises exist in a market system?

A large automobile plant and a small shoe repair shop, a travel agency and a chain of restaurants can be called in one word - a company. It is firms that act in the markets for goods and services as sellers offering their products.

Firm in economics (enterprise) is a commercial organization that spends economic resources to produce goods and services sold on the market.

The owner of the company strives to organize its activities in such a way as to receive income from the sale of goods or services in the form of profit. Achieving this goal largely depends on the rational choice of the type and volume of goods produced, production technology, skillful combination and use of basic production resources, competent management of the production process and sales of finished products on the market.

As you can see, the set of problems is quite wide and varied, and their solution does not promise success for everyone. Many entrepreneurial ventures often fail. In countries with developed market economies, not only are dozens of new firms born every day, but no fewer of them go bankrupt.

What can help a manufacturer achieve efficient production and ensure the viability of the company? The materials studied and the two subsequent paragraphs are devoted to finding an answer to this question.

Factors of production and factor income

The production process is the transformation of economic resources (factors of production) into goods and services. Factors of production are: work(workers and their qualifications), Earth(land plot on which the enterprise is located, raw materials), capital(production building, machines, tools).

The economic prosperity of any company is ensured not only by the named resources - labor, natural, capital. No less important is another factor that links all the others together - entrepreneurial abilities. Entrepreneurs direct their organizational and management efforts to make the best use of available production resources. This will allow them to achieve high results (more products of better quality) and, if successful, make a profit.

You already know that all resources in the economy are limited, that is, they are not enough to produce the amount of goods that people would like. For the economy to function properly, producers must learn to make choices from limited resources. If a company builds a house for its employees, then its available resources (building materials, workers, construction equipment) can no longer be simultaneously used to repair its administrative building. The government, with a limited budget, may delay the construction of several schools in order to use the funds to repair busy roads. As a result of choice, you have to give up something in order to get something else more fully.

Each factor of production has a specific owner. The owner of a factor of production must receive compensation or payment for the fact that someone uses his resource with his consent. Each of us owns at least one of the factors of production (labor, land, capital, entrepreneurial abilities) that can generate income. The amount of this income depends on the quantity and quality of the factor of production you own. If you have only a certain specialty and health, then you receive remuneration for your work in the form wages. Among participants in the modern economy, this source of income is the most common.

Suppose you only possess the factor of production known as entrepreneurial ability. To organize production, you will have to use other people's factors of production: rent land, machines and equipment, hire workers, take out a loan. By selling your products, you can pay part of the proceeds to the owners of the factors of production. Part of the proceeds will remain with you as profit. Profit and will be a reward for your efforts and a payment for your entrepreneurial abilities.

The income that a factor of production such as land brings is called rent. The owner of the land may not carry out entrepreneurial activities and may not make additional efforts to use it. For example, you, owning a plot of land, can rent it out for temporary use to other persons on contractual terms, for a fee. This fee will be your income received from the use of the land.

Capital(from lat. capitalis – main) - property capable of generating income. Capital is a source of income invested in a business in the form of means of production. If a firm can hire labor as a factor of production and rent land, then capital usually belongs to it.

Please note that the concept of “capital” has several meanings: physical capital(means of production created by people to produce goods and services), monetary, or financial, capital(money used to purchase physical capital), investments(investment of material and monetary resources in production, in securities).

Real, fixed capital is the means of production in the form of machines, tools and other production equipment. Money as such does not produce anything; it can be used to purchase various means of production. Money used or intended for the acquisition of physical capital (invested in production) should bring income to its owner in the future.

During the production process, temporarily free funds are generated due to: deductions for repairs and replacement of worn-out labor tools; formed as a result of a temporary gap between the receipt of money from the sale of goods and the payment of wages; part of the profit accumulated to expand production, etc. The inaction of temporarily free funds contradicts the very nature of a market economy; “unemployed money” reduces production efficiency and reduces the return on capital. They can be used as loan capital - temporarily free funds lent on the terms of repayment and payment. Return on loan capital is the interest paid by borrowers for using other people's money.

The income of the owners of production factors is at the same time the costs of the owner of the enterprise (firm). Therefore, the efficiency of a company’s production activities largely depends on the rational combination and use of attracted and own factors of production.

How to determine how effective a company's economic activities are? To do this, it is necessary, in particular, to compare results (profit) with costs (expenses, expenses).

Economic and accounting costs and profits

Thus, any company producing products must cover its costs. Otherwise, its owner will face losses and ruin.

Production costs – These are the costs of the manufacturer (firm owner) for the acquisition and use of production factors.

For an enterprise (firm) economic costs – these are the payments that the company must make to suppliers of necessary resources (labor, material, energy, etc.) in order to divert these resources from use in other industries. These payments are divided into internal and external, and different approaches are used in their calculation.

Internal (or implicit) costs – These are the costs of resources belonging to the owner of the company. For example, the premises in which the company is located are the property of its owner; the owner of the company uses his own labor as a manager. Since these resources belong to the company itself, there will be no external costs (payments for renting premises, wages for a hired manager), but, from the point of view of the company, these internal costs are equal to the cash payments that could be received for its own resources with their alternative use (the best possible). Thus, one’s own premises could be rented out, and the owner of the company, without receiving a satisfactory income, could receive income in the form of a salary by working for hire.

That is why remuneration for performing entrepreneurial functions is called normal profit and is included in internal costs. Internal costs are often hidden, implicit in nature, but they must be taken into account when making economic decisions. And if an accountant records the costs incurred, trying to calculate how much it will cost the company to produce products, then the owner of the company solves the problem of economic choice: is it worth continuing his business or is it better to find a more profitable option for using his own resources.

External costs – This is payment for factors of production that are not the property of the owner of the company. These include costs of materials, energy, labor services, etc. External costs are obvious and reflected in accounting documents, which is why they are called accounting or obvious costs.

Thus, economic costs include external (accounting, or explicit) and internal (implicit) costs with normal profit included in the latter. This is the payment for resources necessary to attract and retain them in a given activity (use case).

Differences between economic and accounting costs inevitably lead to different definitions of profit.

Economic profit – it is the difference between a firm's total revenue and economic costs.

This approach to profit allows you to assess the possibility of existence of the enterprise (whether the revenue covers not only external, accounting, but also internal costs, including normal profit). The excess of cash receipts over the value of economic costs means that the enterprise has a net profit, its existence is justified, and it can develop successfully.

Accounting profit – is the difference between total revenue and accounting costs.

Economic profit focuses the entrepreneur not just on generating income, but on comparing this income with that which could be obtained as a result of an alternative use of available resources. For example, an entrepreneur, having organized production, received an accounting profit of 3,000 rubles. And if he put the money in the bank, he would receive 4,000 rubles. as a percentage. Hence, if the accounting profit turns out to be less than the economic profit, taking into account opportunity costs, then the use of the resource should be considered ineffective from the point of view of the entrepreneur.

Different understandings of a company's profit by economists and accountants lead to different conclusions about the state of affairs in the company.

Which method of calculating costs - accounting or economic - is it better for an entrepreneur to use when analyzing not only the efficiency of his production, but also the prospects for its development? It is likely that the accounting method should be used to calculate the actual value of costs and profits. To make decisions about choosing one of the alternative options for investing resources, only the economic method of calculating costs is acceptable.

Any business owner strives to increase profit margins. For this purpose, he improves the technology and organization of production, stimulates an increase in worker productivity, and introduces a resource saving regime. This leads to a reduction in all costs and contributes to profit growth.

When calculating production costs, the owner of a company must take into account their various types. Let's get acquainted with the costs that are most significant for the manufacturer to take into account.

Value added tax is levied on the increase in the value of a product, which is created at all stages of its production as the product moves to the final consumer (from raw materials to consumer goods). For each company, taxation of its proceeds from the sale of products minus the amount of costs for raw materials, materials, equipment and other material costs is established.

The entrepreneur also has to make payments to various extra-budgetary funds (pension, social insurance, compulsory health insurance, etc.). From his point of view, these contributions are also taxes.

Practice confirms that high tax rates reduce motivation for active work and business activity in general. The famous American economist A. Laffer theoretically proved that with an income tax rate of more than 59%, entrepreneurial activity sharply decreases.

Each government is forced to solve the problem of finding the best possible option for taxing enterprises so that they have the necessary funds to develop and expand their production.

III. Practical conclusions.

1. Knowledge of the conditions and methods of effectively organizing production activities will allow you to become active and effective participants. It should be remembered that the success of this activity depends not only on your abilities (organizational, intellectual), but also on the skillful use of available limited resources.

2. Each of us owns one or more factors of production. We must try to find ways and means of using them rationally and generating income.

3. To make a decision about organizing your business, it is necessary to analyze and compare upcoming costs and possible income from future activities. This will allow you to make an economically intelligent choice of using available resources and reduce the likelihood of losses and ruin.

IV. Document.

How the market regulates production costs and results. From book modern Russian economist - Danilyan"Flight to the market."

The market regulates costs and results in such a way that in general terms they turn out to be approximately proportional for each expedient production. If some manufacturer’s results outstrip costs, then, according to the classical scheme, others rush into this area of activity. This leads to an increase in supply, a fall in prices for the corresponding products, and a standard relationship between costs and results is established. If, on the contrary, somewhere costs begin to outstrip results, then such a manufacturer goes bankrupt, and its production facilities are closed. What is unprofitable does not stand up, what is extremely profitable becomes an area of application of new forces, the balance of costs and results is restored in both cases. This classic scheme, developed by A. Smith, does not always accurately reflect real processes, but in principle remains correct. Even in the situation of a monopolist producer, strong pressure arises, leading to changes of the type described, to a weakening of the revealed excess of private efficiency over average.

Questions and tasks for the document

1) Explain, based on the text of the fragment, how the market regulates costs (costs) and production results. Describe the behavior in market conditions of a manufacturer interested in the success of its production. What does their profit depend on?

2) The famous Austrian economist Joseph Schumpeter called the mechanism of the market displacing old goods, technologies, ideas that do not bring profit, and replacing them with new ones “a system of creative destruction.” Think about why.

3) Condemn the causes and consequences of such a mechanism using the text of the document and the materials of the paragraph.

4) Can the market be called the only instrument for objective social comparison of production costs and results? Give reasons for your answer.

V. Questions for self-test.

1. What does the success of an enterprise depend on?

2. What income can be obtained by owning factors of production?

3. Is it possible and how to get income without having capital?

4. Why does the manufacturer calculate costs and profits?

5. What is an “effective enterprise”?

6. What taxes do companies pay?

VI. Tasks.

1. Make a list of expenses that are necessary in order to: open a workshop for repairing household appliances, organize a gala dinner in a cafe for thirty people, open a rental office for sports equipment.

2. The increase in demand for the printing plant’s products required an increase in production volume. Determine which production costs will be critical: fixed or variable.

3. The Konus company decided to expand production by increasing the range of products. Production of products required the following total costs: raw materials - 500 thousand rubles, wages of workers - 100 thousand rubles, fuel - 70 thousand rubles, transport services - 7 thousand rubles, costs of training and retraining of personnel - 6 thousand rubles, deductions for property insurance - 1 thousand rubles. Calculate the sum of fixed and variable costs.

4. The enterprise’s annual profit amounted to 60 million rubles, and production costs – 100 million rubles. Calculate the profitability of its activities. Explain whether this production can be considered feasible from an economic point of view and why.

VII. Thoughts of the wise.

“The optimism of an entrepreneur is the driving force of economic entrepreneurship, prudence is the force of his self-preservation.”

(), Russian writer, lawyer

VIII. Final part.

1. Evaluating student answers.

Firm in economics (enterprise) is a commercial organization that spends economic resources to produce goods and services sold on the market.

The owner of the company seeks to organize its activities in such a way as to receive income from the sale of goods or services in the form of profit. Achieving this goal largely depends on the rational choice of the type and volume of goods produced, production technology, skillful combination and use of basic production resources, competent management of the production process and sales of finished products on the market.

FACTORS OF PRODUCTION AND FACTOR INCOME

The production process is the transformation of economic resources (factors of production) into goods and services. Factors of production are: labor (workers and their qualifications), land (land on which the enterprise is located, raw materials), capital (industrial building, machines, tools).

The economic prosperity of any company is ensured not only by the named resources - labor, natural, capital. No less important is another factor that links all the others together - entrepreneurial ability. Entrepreneurs direct their organizational and management efforts to make the best use of available production resources. This will allow them to achieve high results (more products of better quality) and, if successful, make a profit.

You already know that all resources in the economy are limited, that is, they are not enough to produce the amount of goods that people would like. For the economy to function properly, producers must learn to make choices from limited resources. If a company is building a house for its employees, then its available resources (building materials, workers, construction equipment) can no longer be simultaneously used to repair its administrative building. The government, with a limited budget, may delay the construction of several schools in order to use the funds to repair busy roads. As a result of choice, you have to give up something in order to get something else more fully.

Each factor of production has a specific owner. The owner of a factor of production must receive compensation or payment for the fact that someone uses his resource with his consent. Each of us owns at least one of the factors of production (labor, land, capital, entrepreneurial abilities) that can generate income. The amount of this income depends on the quantity and quality of the factor of production you own. If you only have a certain specialty and health, then you receive compensation for your work in the form of wages. Among participants in the modern economy, this source of income is the most common.

Suppose you only possess the factor of production known as entrepreneurial ability. To organize production, you will have to use other people's factors of production: rent land, machines and equipment, hire workers, take out financial resources on credit. By selling your products, you can pay part of the proceeds to the owners of the factors of production. Part of the proceeds will remain with you as profit. Profit will be the reward for your efforts and the payment for your entrepreneurial abilities.

The income that a factor of production such as land brings is called rent. The owner of the land may not carry out entrepreneurial activities and may not make additional efforts to use it. For example, you, owning a plot of land, can rent it out for temporary use to other persons on contractual terms, for a fee. This fee will be your income received from the use of the land.

Capital (from Latin capitalis - main) is property capable of generating income. Capital is a source of income invested in a business in the form of means of production. If a firm can hire labor and rent land, then the capital usually belongs to it.

Please note that the concept of “capital” has several meanings: physical capital (means of production created by people to produce goods and services), monetary or financial capital (money used to acquire physical capital), investment (investment of material and funds for production).

In the production process, temporarily free funds are generated due to: deductions for repairs and replacement of worn-out labor tools; formed as a result of a temporary gap between the receipt of money from the sale of goods and the payment of wages; part of the profit accumulated to expand production, etc. The inaction of temporarily free funds contradicts the very nature of a market economy; “unemployed money” reduces production efficiency and reduces the return on capital. They can be used as loan capital - temporarily free funds provided on loan on the terms of repayment and payment. Return on loan capital is the interest paid by borrowers for using other people's money.

How to determine how effective a company's economic activities are? To do this, it is necessary, in particular, to compare the results of work with costs (expenses, expenses).

ECONOMIC AND ACCOUNTING COSTS AND PROFIT

As noted above, the activity of a company makes sense for its owner only if it makes a profit. Let us recall that profit appears as a result of the excess of revenue from sales of products over the sum of costs for all factors of production for this activity. Thus, any company producing products must cover its costs. Otherwise, its owner will face losses and ruin.

Production costs - these are the costs of the manufacturer (owner of the company) for the acquisition and use of production factors.

For an enterprise (firm) economic costs - these are the payments that the company must make to suppliers of necessary resources (labor, material, energy, etc.) in order to divert these resources from use in other industries. These payments are divided into internal and external, and different approaches are used in their calculation.

Internal (or implicit) costs - these are the costs of resources belonging to the owner of the company. For example, the premises in which the company is located are the property of its owner; the owner of the company uses his own labor as a manager. Since these resources belong to the company itself, there will be no external costs (payments for renting premises, wages for a hired manager), but, from the point of view of the company, these internal costs are equal to the cash payments that could be received for its own resources with their alternative use (the best possible). Thus, one’s own premises could be rented out, and the owner of the company, without receiving a satisfactory income, could receive income in the form of a salary by working for hire.

That is why the remuneration for performing entrepreneurial functions is called normal profit and is included in internal costs. Internal costs are often hidden, implicit in nature, but they must be taken into account when making economic decisions. And if an accountant records the costs incurred, trying to calculate how much it will cost the company to produce products, then the owner of the company solves the problem of economic choice: is it worth continuing his business or is it better to find a more profitable option for using his own resources.

External costs - payment for factors of production that are not the property of the owner of the company. These include costs for materials, energy, labor, etc. e. External costs are obvious and reflected in accounting documents, so they are called accounting or explicit costs.

Thus, economic costs include external (accounting, or explicit) and internal (implicit) costs with normal profit included in the latter. This is the payment for resources necessary to attract and retain them in a given activity (use case).

Differences between economic and accounting costs inevitably lead to different definitions of profit.

Economic profit is the difference between a firm's total revenue and economic costs.

This approach to profit allows you to assess the possibility of existence of the enterprise (whether the revenue covers not only external, accounting, but also internal costs, including normal profit). If cash receipts exceed the sum of economic costs, it means that the enterprise has a net profit, its existence is justified, and it can develop successfully.

Accounting profit is the difference between total revenue and accounting costs.

Different understandings of a company's profit by economists and accountants lead to different conclusions about the state of affairs in the company.

Any business owner strives to increase profits. For this purpose, he improves the technology and organization of production, stimulates an increase in worker productivity, and introduces a resource saving regime. This leads to a reduction in all costs and contributes to profit growth.

FIXED AND VARIABLE PRODUCTION COSTS

Costs are formed differently depending on the type of resources used in production. Let's consider them using the example of the use of materials and production facilities of an enterprise for the manufacture of washing machines. The more units of production are produced, the more material is consumed, therefore, the costs associated with the use of materials (metal, plastic, rubber) will increase. At the same time, the dimensions of the building and workshops, the volume of equipment do not change, which means that the costs associated with the use of the building and the equipment installed in the workshops may remain the same. Such differences in the use of production resources forced economists to consider such types of costs as fixed and variable.

Fixed costs - this is that part of total costs that does not depend at a given time on the volume of output.

An example of fixed costs could be a company's rent for premises, building maintenance costs, costs of training and retraining of personnel, salaries of management personnel, utility costs, and depreciation.

Depreciation - reduction in the cost of capital resources as they wear out during production use. To compensate for the wear and tear of buildings, equipment, and vehicles, funds are accumulated (depreciation deductions), which are used to repair or manufacture new labor tools instead of worn-out ones. These deduction amounts are included in fixed expenses.

The company incurs fixed costs even if it does not work. For example, if a bakery temporarily stopped the production of its products, then utilities and management salaries will still require expenses.

Variable costs - this is that part of the total costs, the value of which for a given period of time is directly dependent on the volume of production and sales of products.

Examples of variable costs are the costs of purchasing raw materials, labor, energy, fuel, transportation services, costs of containers and packaging, etc.

Variable costs increase as production volume increases and decrease as production volume decreases.

The differences between fixed and variable costs are significant for every entrepreneur. He can manage variable costs, since their value changes over a short period of time as a result of changes in production volume. Fixed costs are beyond the control of the company's administration, since they are mandatory and must be paid regardless of the volume of production.

Analyzing changes in production costs depending on the volume of output is very important. Only on its basis can one understand how firms make decisions and determine the volume of production of goods and services, as well as set prices for goods offered on the market. Comparing production costs is extremely important for managing a company, determining optimal production sizes and opportunities for generating sustainable income.

So, participants in entrepreneurial activity, striving to make their business effective, have to think about increasing profits and reducing costs. All of the above will help answer one more question: what does an effective business, an effective enterprise (firm) mean? And although the concept of “efficiency” has already been used, let’s try to understand it better.

The concept of “effectiveness” comes from the word “effect”. In economics, an effect is a specific positive result of an activity (for example, an increase in profit received by a company compared to the previous year, or the amount of money saved). Efficiency is determined by comparing the magnitude of the effect and the costs (expenses, expenses) that ensure its receipt.

Efficiency is the effectiveness of a process, defined as the ratio of effect, result to costs. To analyze the efficiency and profitability of an enterprise, an indicator such as profitability is used. Profitability is calculated as the ratio of the profit received by an enterprise for a certain period to the costs incurred during the same period (profitability = profit: costs). Think about what needs to be done to achieve high efficiency of the company.

TAXES PAID BY ENTERPRISES

The amount of profit of an enterprise is influenced not only by production costs, but also by the amount of taxes paid by it. Taxes are a significant cost item for a manufacturer, which he is forced to take into account when organizing and running his business.

You became familiar with the tax system in basic school. Let us remind you that taxes are divided into direct and indirect. Direct taxes are levied on the income of citizens and firms in an explicit form (for example, income tax, profit tax, property tax). Indirect taxes are paid discreetly when certain actions are taken (for example, when purchasing goods, exchanging currency, importing goods from abroad) and, included in the cost of goods and services (for example, sales tax, customs duties), are paid by consumers.

What types of taxes do modern enterprises pay?

Direct tax from the company - income tax is widely used in world practice. In Russia, the law provides for taxation of profits of all enterprises and organizations; in a number of countries, only joint-stock companies pay this tax, and small businesses and partnerships pay income tax. In most cases, income tax is 35% of gross profit, i.e. the difference between all income and all expenses of the company. The income tax rate may vary depending on the type of activity. Thus, income from banks, insurance companies, stock exchanges and from intermediary activities is taxed at a rate of 43%, and income from casinos and gambling business - at a rate of 90%. But there are also tax incentives that allow the government to stimulate actions that are beneficial to society. In Russia, for example, part of the profit used for investment in production development, scientific research, and charitable events is partially exempt from tax. Profit received from the production and sale of agricultural products is not subject to taxation.

Indirect tax on the company - value added tax (VAT). It was invented by economists not so long ago (first introduced in the 60s of the 20th century), but today it is used by about 50 countries. In Russia, this tax was introduced in 1992 and is key in the tax system. Thus, more than a third of the federal budget revenues are generated from the proceeds of this tax.

In Russia in 2004, the value added tax rate was set at 18%, and for certain goods (essential food products, goods for children) - at 10%. Compare these figures with the level of VAT in other countries (France - 18.6%, England - 15%, Germany - 14%, Luxembourg - 12%). Think about how the level of economic development of the country and the economic policy of the state influence this indicator.

The entrepreneur also has to make payments to various extra-budgetary funds (pension, social insurance, compulsory health insurance, etc.). From his point of view, these contributions are also taxes.

Practice confirms that high tax rates reduce motivation for active work and business activity in general. The American economist Laffer theoretically proved that with an income tax rate of more than 59%, entrepreneurial activity sharply declines.

Each government is forced to solve the problem of finding the best possible option for taxing enterprises so that they have the necessary funds to develop and expand their production.

PRACTICAL CONCLUSIONS

1 Knowledge of the conditions and methods of effectively organizing production activities will allow you to become active and effective participants. It should be remembered that the success of this activity depends not only on your abilities (organizational, intellectual), but also on the skillful use of available limited resources.

2 Each of us owns one or more factors of production. We must try to find ways and means of using them rationally and generating income.

3 To make a decision about organizing your business, it is necessary to analyze and compare upcoming costs and possible income from future activities. This will allow you to make an economically intelligent choice of using available resources and reduce the likelihood of losses and ruin.

DOCUMENT

How the market regulates production costs and results. From the book of a modern Russian economist V. I. Danilova-Danilyana "Flight to the market".

The market regulates costs and results in such a way that in general terms they turn out to be approximately proportional for each expedient production. If some manufacturer’s results outstrip costs, then, according to the classical scheme, others rush into this area of activity. This leads to an increase in supply, a fall in prices for the corresponding products, and a standard relationship between costs and results is established. If, on the contrary, somewhere costs begin to outstrip results, then such a manufacturer goes bankrupt, and its production facilities are closed. What is unprofitable does not survive, what is extremely profitable becomes the area of application of new forces, the balance of costs and results is restored in both cases. This classic scheme, developed by A. Smith, does not always accurately reflect real processes, but in principle remains true. Even in the situation of a monopolist producer, strong pressure arises, leading to changes of the type described, to a weakening of the revealed excess of private efficiency over average.

QUESTIONS AND TASKS FOR THE DOCUMENT

1. Explain, based on the text of the fragment, how the market regulates costs (costs) and production results. Describe the behavior in market conditions of a manufacturer interested in the success of its production. What does their profit depend on?

Description of the presentation by individual slides:

1 slide

Slide description:

2 slide

Slide description:

Task 1 The Konus company decided to expand production by increasing the range of products. Production of products required the following total costs: raw materials - 500 thousand rubles, wages of workers - 100 thousand rubles, fuel - 70 thousand rubles, transport services - 7 thousand rubles, costs of training and retraining of personnel - 6 thousand rubles, deductions for property insurance - 1 thousand rubles. Calculate the sum of fixed and variable costs.

3 slide

Slide description:

Problem 2 The owner of the company paid employees 50 thousand rubles. The interest payment for the loan amounted to 100 thousand rubles; depreciation charges - 50 thousand rubles; costs for raw materials, heating, lighting, repairs - 30 thousand rubles. The total income of the company was 300 thousand rubles. The owner of a company can get a job as an employee in another company and earn 60 thousand rubles there. From investing his capital in another enterprise, the owner of the company could receive 20 thousand rubles. Determine: 1) Accounting and economic costs; 2) Accounting and economic profit; 3) Should the owner of the company continue his business?

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Task 3 A furniture factory produces beds. She set her goal to achieve a profit of 15,000 rubles. per month. The price of one bed is 400 rubles, average variable costs are 150 rubles. Fixed costs are 4,000 rubles per month. a) determine how many beds the company should produce per month b) how many beds the company will produce if the price rises to 500 rubles.

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Problem 4 At a price of 60 rubles. The publishing house sells 10 thousand copies of its glamor magazine per copy. If the price drops to 50 rubles. per copy, 20 thousand copies will already be sold. The total costs of the publishing house with the previous circulation were 300 thousand rubles. , and with a new circulation they will amount to 700 thousand rubles. How much will the publisher's profit increase as a result of the price reduction?

Knowledge of the conditions and methods of effectively organizing production activities will allow you to become active and effective participants. It should be remembered that the success of this activity depends not only on your abilities (organizational, intellectual), but also on the skillful use of available limited resources.
Each of us owns one or more factors of production. We must try to find ways and means of using them rationally and generating income.

To make a decision about organizing your business, it is necessary to analyze and compare upcoming costs and possible income from future activities. This will allow you to make an economically intelligent choice of using available resources and reduce the likelihood of losses and ruin.

Documentation

How the market regulates production costs and results. From the book of the modern Russian economist V.I. Danilov-Danilyan “Flight to the Market.”

The market regulates costs and results in such a way that in general terms they turn out to be approximately proportional for each expedient production. If some manufacturer’s results outstrip costs, then, according to the classical scheme, others rush into this area of activity. This leads to an increase in supply, a fall in prices for the corresponding products, and a standard relationship between costs and results is established. If, on the contrary, somewhere costs begin to outstrip results, then such a manufacturer goes bankrupt, and its production facilities are closed. What is unprofitable does not survive, what is extremely profitable becomes the area of application of new forces, the balance of costs and results is restored in both cases. This classic scheme, developed by A. Smith, does not always accurately reflect real processes, but in principle remains true. Even in the situation of a monopolist producer, strong pressure arises, leading to changes of the type described, to a weakening of the revealed excess of private efficiency over average.

Questions and tasks for the document

Explain, based on the text of the fragment, how the market regulates costs (costs) and production results. Describe the behavior in market conditions of a manufacturer interested in the success of its production. What does their profit depend on?
The famous Austrian economist Joseph Schumpeter called the mechanism of the market displacing old goods, technologies, ideas that do not bring profit, and replacing them with new ones “a system of creative destruction.” Think about why.
Discuss the causes and consequences of such a mechanism using the text of the document and the materials in the paragraph.
Can the market be called the only instrument for objective social comparison of production costs and results? Give reasons for your answer.

Self-test questions

What does the success of an enterprise depend on?
What kind of income can you get from owning factors of production?
Is it possible and how to get income without having capital?
Why does a manufacturer calculate costs and profits?
What is an “effective enterprise”?
What taxes do companies pay?

Tasks

Make a list of the costs that are necessary in order to: open a workshop for repairing household appliances, organize a gala dinner in a cafe for thirty people, open a rental office for sports equipment.
The growing demand for the printing plant's products required an increase in production volume. Which production costs will be critical: fixed or variable?
The Konus company decided to expand production by increasing the range of products. Production required the following total costs: raw materials - 500 thousand rubles, wages of workers - 100 thousand rubles, fuel - 70 thousand rubles, transport services - 7 thousand rubles, costs of training and retraining of personnel - 6 thousand rubles, deductions for property insurance - 1 thousand rubles. Calculate the sum of fixed and variable costs.
The enterprise's annual profit amounted to 100 million rubles, and production costs - 60 million rubles. Calculate the profitability of its activities. Explain whether and why this production can be considered feasible from an economic point of view.