CROP and 4 Factors of production

C

competition →  rivalry among businesses for money/sales

R

risk → success or failure

O

ownership → individuals or businesses own property/stores

P

profit →owners make decisions to maximize profit. revenue-expenses.

4 parts of production

natural, human, capital, entrepreneurial

Natural example

plastic, paper, sugar

Human example

CEO, product development scientists, factory workers

Capital example

factories, trucks, revenue

Entrepreneurial example

flavor formula, jingles/slogans, different logos

natural

materials to make product

human

helps create product

capital

anything a business owns

entrepreneurial

ideas that go into making the product

c example

price and non price, reputation, sales, refills, location

r example

new locations, promotions/new flavors, high prices, loans

o example

patents, investors, locations, licensing agreements

p example

sales/revenue, endorsements=sales

Price

how much we pay for a product

Non-price

quality, reputation, location, financing/service