The 42 Milion Dollar Hit

  The 42 Million dollar hit

Brady Moeller

Going into the season, the Packers were one of the top teams in the NFL and projected by most to host a few playoff games and ultimately win the Superbowl. Unfortunately, Packers star quarterback Aaron Rodgers suffered a broken collarbone in week 6 loss to the Minnesota Vikings. Losing Rodgers wasn’t only bad for the Packers, but also really bad for the economy of Green Bay. So what does this mean for the economy?

For the past 8 seasons, the Packers have made the playoffs under Aaron Rodgers. This year the Packers are sitting at 5-6,  hosting a playoff game at Lambeau field at this point is quite faint. Local businesses such as hotels, convenience stores, restaurants, and homeowners letting people park on their lawns for $20 will lose a lot of potential revenue and then the  Having a playoff game is free advertising for the city even though you may not even realize it. Having a national audience tuned into a game for three hours generates so much publicity for the city of Green Bay. They show shots of the city, documentaries, and many more ways that generate publicity for the city. Stores like Cabelas, located three blocks away from Lambeau field, won't be seeing an increased number of customers coming this January to buy essentials like hats, gloves, and hand warmers that would normally be in high demand for a bitter cold playoff game. Hotels would also be greatly affected by not having a playoff game. Hotels in Green Bay are able to charge on average $324 per night with a two night minimum on weekends with a game.  The loss of revenue for not having one playoff game is roughly 14 million. If the Packers were to get the number one seed and make it to the NFC Championship game, that would’ve been roughly 42 million in revenue for the economy. On years were the Packers the playoffs but don’t host a playoff game still generates a lot of money for the city. People are more likely to fill up restaurants and bars to watch the game.  It’s hard to believe that an injury to one player could cost a city that much money. The demand for pretty much everything in Green Bay will go down greatly and will likely cost Green Bay a lot this January, bearing a miracle.

Works Cited

Egan, Dan. “Green Bay prepares for playoff game at Lambeau.” Milwaukee Journal Sentinel, Milwaukee Journal Sentinel, 2 Jan. 2017, www.jsonline.com/story/news/2017/01/02/green-bay-scrambles-prepare-playoff-game-lambeau/96089546/.

Press, Pioneer. “Green Bay Packers: City scores with economic impact of playoffs.” Twin Cities, Twin Cities, 28 Oct. 2015, www.twincities.com/2015/01/04/green-bay-packers-city-scores-with-economic-impact-of-playoffs/.

“Favre, Thanksgiving set up unique atmosphere for Chicago Bears' trip to Lambeau.” Pro Football Weekly, 25 Nov. 2015, www.profootballweekly.com/2015/11/25/favre-thanksgiving-set-up-unique-atmosphere-for-chicago-bears-trip-to-lambeau/a9atkig

The iPhone Xtreme

The iPhone Xtreme

By Alyssa Tomfohrde

On November 3rd of 2017, the iPhone X was released all over the world. This was the tenth anniversary of the Apple’s iPhone, and with the brand new design and face recognition feature, there was a lot of craze about this new item. People all around the world were excited for the launch because it was supposedly new and improved from the past phones. Since there were so many people excited for the item, it was in high demand. Knowing this would happen Apple thought they were prepared, but ended up having a shortage of supply, since they sold out within minutes of the launch due to the earlier available pre-order that many people took advantage of, which broke a record for pre-sales the day before the release. Though, this isn’t some small purchase at all. The phone itself costs $999 USD which you could round up to say that it costs $1,000. For some who are in the lower and middle classes who cannot afford to drop $1,000 out of nowhere, they have to weigh the pros and cons. If the marginal cost of the phone equals the marginal benefit for a certain individual, it would make sense that they would buy the phone. If the features seem exemplary and worth it for the cost, then it is worth the buy. With this big expense, there are many opportunity costs of the other things that money could go towards. The money could go towards groceries for the week, the electric bill, water bill, gas money, even could be used for their current phone bill, though these people bought the iPhone. The substantial amount of sales made the profits of Apple reach a new growth of 19%. Because of the new and advanced technology, this rose the GDP of the country because of the production of the good.

From Black Friday to Cyber Monday, U.S. Cellular was having a deal for iPhone 8’s and iPhone 8 Plus’s where the 8 was free if you turned in an old phone in good condition and obtained unlimited data, as was the same for the iPhone 8 Plus, though instead of being free, it was installment price of $3.30 per month. Though, there was no deal present for the brand new iPhone X. Since the iPhone X is so new  and more popular, it is an inelastic good whereas the 8 and 8 Plus were more elastic goods since they aren’t in as high of a demand as the iPhone X was. Therefore, the iPhone X has caused an extreme change in the economy.

Works Cited

Franck, Thomas. “Apple Shares Rise to All-Time High on Booming IPhone X Demand Reports.” CNBC, CNBC, 30 Oct. 2017, www.cnbc.com/2017/10/30/apple-shares-rise-on-booming-iphone-x-demand.html.

“IPhone X.” Apple, www.apple.com/shop/buy-iphone/iphone-x.

Rushe, Dominic. “Apple Shares Hit Record High as IPhone X Pre-Sales Fuel 19% Rise in Profits.” The Guardian, Guardian News and Media, 2 Nov. 2017, www.theguardian.com/technology/2017/nov/02/apple-profits-shares-record-high-pre-sales-iphone-x.

Smith, Chris. “IPhone X Sold out in Just a Few Minutes.” BGR, 27 Oct. 2017, bgr.com/2017/10/27/iphone-x-sold-out-ship-times-slip-minutes/.

Zumbrun, Josh, and Tripp Mickle. “How Apple's Pricey New IPhone X Tests Economic Theory.” The Wall Street Journal, Dow Jones & Company, 17 Sept. 2017, www.wsj.com/articles/how-apples-pricey-new-iphone-x-tests-economic-theory-1505660400.

How does Online Shopping affect Physical Stores?

How does Online Shopping affect Physical Stores?

Hailey Johnson

As using technology in today’s society has become extremely prevalent, the use of online shopping compared to in-store shopping has increased more than ever. This means that certain retail stores could shut-down if their revenue is only covering their total variable costs. Already, it is easy to see how online shopping can have a negative effect on in-store shopping; however, from the consumer’s eyes, the opportunity cost of online shopping just may be less than taking the time to shop in-store.

While there are many benefits to in-store shopping such as getting your item immediately or asking for opinions from others, there are significant barriers to entry, which may include real-estate costs, staff, and more. This means it can be difficult for a brick and mortar retail location to stay in business if online stores become a prominent choice of consumers. In addition to that, there are fixed costs as well as variable costs that must be covered. While both retail models will have their own set of costs, the physical stores will most likely have more to deal with. This can include the space in which the business operates in, weekly payroll, and the sales commision for example (A Guide). If the in-store owners are not making enough profit due to their competitors however (which in this case are the online stores), they will most-likely shut-down. For example, according to Fox Business, “the children’s clothing retail said it will close hundreds of store locations by 2020 as part of a shift toward digital commerce” (Retail).

Based off of this research, there are many reasons why online shopping can affect brick and mortar retail operations negatively, even though online shopping has significant benefits. Though ultimately, because online shopping is so accessible in today’s society, this might cause for more shopping in the digital world, instead of the real world.

Works Cited

Barrabi, Thomas. “Retail Apocalypse: 21 Big Retailers Closing Stores in 2017.” Fox Business, Fox Business, 19 Sept. 2017, www.foxbusiness.com/features/2017/09/19/retail-apocalypse-20-big-retailers-closing-stores-in-2017.html.

Peavler, Rosemary. “A Guide to Fixed and Variable Costs Doing Business.” The Balance, The Balance, www.thebalance.com/a-guide-to-fixed-and-variable-costs-of-doing-business-393479.

S, Anamika. “Top 10 Benefits of Online Shopping That Make Your Life Easy.” ToughNickel, ToughNickel, 13 June 2017, toughnickel.com/frugal-living/Online-shopping-sites-benefits.

The Real Costs of College

The Real Costs of College

Hannah Antczak

As November comes to an end, the deadlines for applications to many colleges across the nation are slowly approaching. With thousands of options for applicants, it is hard to narrow it down to just one. However, with the rising cost of colleges in recent years and the huge difference in price between in state and out of state tuitions, it only makes the decision harder. Some people question if college is even worth all the money. These days, with all the jobs and opportunities in the real world that require college degrees, it is better to go to college and spend the money to get the degree than go find a job straight out of high school.

College would be considered monopolistically competitive, as there are thousands of colleges in the US alone and all of them offer the same basic experience, however they don’t take their price from the market and there is a wide variety of costs.

There are many different opportunity costs that are paid when one decides to go to college. Instead of going to college, a person could find a job right out of high school. This would allow said person to make more money in 4 years instead of spending money to attend college. However, nearly 65% of jobs in our economy require some sort of degree besides a high school diploma, so not going to college would be giving up the opportunity to find better jobs (Carnevale).

Student loans are also another huge factor for deciding whether or not it is worth it to go to college. In June 2016, there were roughly $1.3 trillion worth of debt for Americans, and the average student finished school with $28,950 in debt. Because of all the debt, “45% of people with student loan debt said college was not worth it”. (“College Education”)

Although tuition is gradually increasing, there are still a lot of ways to avoid the high cost. Many schools across the country offer scholarships, both academic and athletic. There are even random scholarships, such as scholarships for tall people, that people can apply for to help pay for their tuition. Financial aid is another big way people can save money on tuition. Also, some high schools offer college level courses (such as AP classes) that allow you to save money and get college credit by passing a cumulative test at the end of the year.

Most of the costs of college are variable costs, so cutting some things out can help save money. For example, buying used books instead new books, living at home instead of in the dorms, or buying the 9 meal’s a week plan versus the 15 meals can all help in the long run nm

to save a little extra cash.

Overall, the positives outweigh the negatives when it comes to deciding whether or not it is worth it to attend college. Even with the high tuition and many opportunity costs, the experience you will receive in college will help tremendously when applying for jobs as many careers  nowadays require higher level education. College will give you so many connections and opportunities that you can’t receive anywhere else. In order to give everyone an equal chance to receive these experiences, tuition should be lowered to a more affordable price. It is unfair that there are so many smart and talented people in the world who are unable to go to college because of the money. Lowering tuition would allow even more people to go to college so no one would have to ask themselves that question: is it really worth it to go to college?

Carnevale, Anthony P., et al. Job Growth and Education Requirements Through 2020.

Georgetown University, cew.georgetown.edu/wp-content/uploads/ 2014/11/Recovery2020.ES_.Web_.pdf.

“College Education - ProCon.org.” ProConorg Headlines, college-education.procon.org/.

Christmas Tree Craze

Written by: Nicole H.

Christmas Tree Craze

It is not hard to find a Christmas tree on display in the holiday season throughout December because it is a well known tradition and it is a tree that means more than just wood and pine needles. Christmas trees are sold in perfect competition, meaning there is little product differentiation, there are many producers, in this case farmers, and the market price is beyond the control of individual sellers. They are price-takers. Christmas tree production happens all over the world, whether it is artificial or a farm-grown evergreen. As for farm-grown trees, the United States is a leading producer, along with Germany and Canada. In fact, Christmas trees are grown in all 50 states, Oregon with the most land devoted to Christmas tree production. During the Christmas season here in the US, each year around 35-40 million trees are sold. Unfortunately, the average tree takes about 6-10 years to fully mature and harvest so each year around 73 million are planted. In the past there has been an oversupply of natural trees in the United States. In the late 1980s through the mid 1990s, prices decreased because of the major supply. “Christmas trees sold for around $5 as opposed to the usual $18-30 each” (Christmas). The use of natural trees decreased, as the use of artificial trees continued to increase. As for today, we see a rise in price of our Christmas trees this season. According to Bryan Zellner who has been in the tree business for years, there are fewer trees this year than last year. Although shortage has happened before, there are even fewer this year than we have seen in previous years. Due to the decrease in supply, prices have increased. Therefore, only the consumers willing to pay this higher price will have a tree in their home. This price increase is pretty significant and according to Zellner they have increased between 10 and 15 percent. The reason for this shortage goes back about a decade ago when this generation’s trees were planted to grow and mature. At that time, the demand for Christmas trees was very low, so as a result growers planted fewer seedlings because of lack of profits. Now in 2017, we are left with a short supply, but a high demand. Another factor that contributed to the supply of trees are some wild fires that occurred in Oregon and droughts that occurred in North Carolina, two states with large tree production. As a result of the decrease in profits over the years, many firms left the industry. Just in five years between 2010 and 2015, the number of growers dropped about 215 growers. As the prices increase this year, I predict that the artificial tree demand will increase as it is a substitute for natural trees. I do not think that there will be a decrease in demand for complements of natural trees because things like lights and ornaments and tree skirts are essential for both natural and artificial. If you do decide to go the natural route, do not wait to get your tree because you may be left with a picked over selection.

Bibliography

Burden, Dan. “Christmas Tree Profile.” Agricultural Marketing Resource Center, www.agmrc.org/commodities-products/forestry/christmas-tree-profile/.

“Christmas Tree Production.” Wikipedia, Wikimedia Foundation, 30 Aug. 2017, en.wikipedia.org/wiki/Christmas_tree_production.

Makaula, Walter. “Why Christmas Trees Are More Expensive This Year.” KCRA, KCRA, 25 Nov. 2017, www.kcra.com/article/why-christmas-trees-are-more-expensive-this-year/13925655.

“Why Your Christmas Tree Will Cost More This Year.” Southern California Public Radio, Southern California Public Radio, 24 Nov. 2017, www.scpr.org/news/2017/11/24/78110/why-your-christmas-tree-will-cost-more-this-year/.

Cities Race for Amazon

Cities Race For Amazon

By: Robert Haga

About a month ago Amazon announced that they would be constructing a HQ2 in North America. Amazon is one of the biggest and fastest growing companies in the world today. They are the biggest online shopping market in almost every industry except food, which could change after their recent purchase of Whole Foods, and after their announcement to build a new Headquarters in North America; 238 cities all over the continent are trying to get Amazon in their city. So why are so many cities trying to get Amazon to build in their area?

The benefits to Amazon economically are undeniably substantial. Amazon’s first HQ in Seattle, Washington has boosted their economy as the company has grown. On Amazon’s website they give the affects what their first HQ has done in the last 6 years, “Amazon estimates its investments in Seattle from 2010 through 2016 resulted in an additional $38 billion to the city’s economy – every dollar invested by Amazon in Seattle generated an additional $1.40 for the city’s economy overall.” $38 billion dollars added to a city's economy due to only one company is unbelievable in itself, but taking into account that Amazon projects its new HQ to be even bigger with over 50,000 high paying jobs along with an investment of more than $5 billion dollars in construction of this new facility, there’s no wonder why so many cities are competing for this  opportunity.

The magnitude of the facility will cause the construction build process to create tens of thousands of jobs along with tens of billions of dollars in the surrounding area. This will likely require a high populated area with a substantial tech labor force for the tens of thousands of tech jobs that will open up. This is why Dallas, Texas is rated the number 1 choice for the new HQ. Texas in general has some of the best tech schools in America. This is a big attraction for Amazon as one of the hardest parts of choosing a location in finding enough qualified young workers to quickly fill the positions needed. Texas has other attractions as well as their low cost of living and lack of income taxe are some of the reasons for Dallas is considered the number 1 choice.  These factors cause Dallas to out rank cities like Boston, Atlanta, and Washington DC.

Cities around the country have been trying things like alternative transportation, business friendly policies, local funding for the business, and etc.. to make them look like a better fit for Amazon’s HQ2, which have caused controversy between their citizens saying they don’t what increased taxes to fund Amazon or new means of transportation which are alternatives from automobiles.

Although Dallas is the number 1 choice on the outside deals can be made that make less likely cities more attractive to Amazon and Dallas is still just one of 238 cities that might get Amazon’s approval.

Works Cited

Bizjournals.com, www.bizjournals.com/dallas/news/2017/11/14/dallas-named-top-contender-for-amazon-s-new.html.

“Amazon Announces 238 Proposals for HQ2 from across North America.” Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & More, www.amazon.com/b?ie=UTF8&node=17044620011.

Parilla, Joseph. “Which Cities Are Well Positioned to Land Amazon's HQ2?” Brookings, Brookings, 8 Sept. 2017, www.brookings.edu/blog/the-avenue/2017/09/08/which-cities-are-well-positioned-to-land-amazons-hq2/.

Jumbo Jets Cleared to Land...for Good?

Jumbo Jets Cleared to Land… For Good?

Alex Steinhaus

Since its rollout in 1970, Boeing has sold over 1,500 747 aircraft. Known by its distinct front hump, the 747 has been dubbed the “Queen of the Skies”, despite being smaller than its competitor, the newer Airbus A380. The 747 typically carries 410 passengers in a standard configuration, while the A380 can carry 544 passengers. While it’s easy to see why these two birds have earned the nickname Jumbo Jet, It is also easy to see that the aircraft are almost ready to be retired and discontinued.

Currently, there are 661 747’s still in service and in the skies: 253 passenger jets, 374 cargo variants and 34 VIP or government owned aircraft. At the end of May 2017, there were only 5 unfilled orders for the most recent model of the 747: the 747-8, as well as 15 unfilled cargo freighter orders.  For Airbus, 100 planes have yet to be delivered, with a total of 217 built since its rollout in 2005. All of the A380s are passenger configurations, and Airbus is no longer exploring a cargo version as it is currently developing the Beluga freighter.

So why are the jumbo jets losing popularity amongst airlines? Fuel costs are a major factor. Even with low fuel costs, jumbo jets are still gas guzzlers, and lack the fuel efficiency technology that manufacturers are putting into their smaller planes, which are in greater demand. Why? Operating costs. The A380 has an operating cost of between $26,000 and $29,000 per hour. Comparing that to a smaller Boeing 737-800, the 737 can fly for $2,180 an hour. With planes that fly for a cheaper operation cost, airlines make a larger profit, despite the fact that the jumbos can carry more paying passengers. Even though these planes can fly farther than a 737 for example, manufacturers have used those fuel efficiency technologies to create their newest products: the Boeing 787 and the Airbus A350. The 787, also known as the Dreamliner can carry anywhere from 242 to 330 passengers, while the A350 has a capacity of anywhere between 280 to 366 passengers. While these twin-aisle wide body jets are considerably smaller than their jumbo counterparts, the range of these aircraft is comparable. On the American side, the 787 has a range of 14,140 km, and the 747 has a range of 14,816 km. For the European Airbus, the A350’s range is 15,000 km and the A380’s range is 15,200 km.

While the appeal of flying on a double decker plane is cool in appearance, economically it’s a different story. The future of commercial aviation are smaller planes, and the manufacturers have delivered with the launch of the 787 and the A350. While Boeing has conceded that the 747 no longer will carry passengers in the future, the queen is predicted to survive in the cargo freighter market. This as the only american carriers still flying the 747, Delta and United, have plans in place to retire their planes by the end of this year. Airbus, on the other hand, still believes that there is a future for the A380, and is already developing the A380plus, a more fuel efficient model for the world’s largest passenger plane. No matter the case, only time will tell the future for the jumbo jet, but with the current trend, the skies will be dominated by the smaller planes, leaving the queens to be sent to the scrap yard.

Works Cited

“Airbus A380.” Wikipedia, Wikipedia Foundation, Inc, en.wikipedia.org/wiki/Airbus_A380.

“Boeing 747.” Wikipedia, Wikipedia Foundation, Inc, en.wikipedia.org/wiki/Boeing_747.

“Boeing.” Boeing: 787 Dreamliner, Boeing, www.boeing.com/commercial/787/.

Gates, Dominic. “Boeing Admits Its 747 ‘Queen of the Skies’ Has No Future as Passenger Plane.” The Seattle Times, The Seattle Times Company, 20 June 2017, 11:10 AM, www.seattletimes.com/business/boeing-aerospace/boeing-admits-its-747-queen-of-the-skies-has-no-future-as-passenger-plane/.

Goldstein, Michael. “Operating Costs Killing Jumbo Jets As Airlines Profit From Smaller Planes.” Forbes, Forbes Media LLC, 5 Oct. 2017, 8:25 PM, www.forbes.com/sites/michaelgoldstein/2017/10/05/operating-costs-killing-jumbo-jets-as-airlines-profit-from-smaller-planes/#7b753237336a.

“Technical Specifications & Range.” A350 XWB by Airbus, Airbus SAS, www.a350xwb.com/technical-specifications/.

Holiday Madness

Holiday Madness

By: Izzy DeAngelis

Christmas time is all the buzz in late November and December. Everyone’s looking for the “perfect” gift and those great deals. So with good deals comes some opportunity costs, especially on a hectic day like Black Friday. The day after Thanksgiving, also known as Black Friday, is when most people go out to shop for their gifts. According to the National Retail Federation, there are about 164 million people that go shopping during Thanksgiving weekend. The craziest thing about this day is people waking up at the crack of dawn to go sprint into the stores and get the limited offers. In this process, they may still not get the goods they seek to get, which would not only be an opportunity cost just like having to wake up early, or potentially getting hurt in the process by being trampled by crazy ladies.

Since this is the one of the most busiest shopping days of the year, the U.S. made on average last year about $655.8 billion(Amadeo). This increase over the years has shown substantial growth for the sales in retail stores like Kohl's, JCPenney’s, Boston Store, etc. With the increased traffic of people going in and out of the stores, there is usually an increase in employment options for these stores. These job opportunities open up which help create marginal benefits to people in need of a job/money. But as with anything there are always marginal costs. In this case, by having a new job the employees won’t have as much time to do other things besides work because of the increase of sales. In the end, the good outweighs the bad and the employers will not only be helping themselves but others too, especially when their customers find that perfect gift.

Not only do stores experience an increase in employment but they also increase the demand of their goods. According to the law of demand, with the increase in demand of certain products in these stores there will be a decrease in prices, which is why there are sales that happen during the holidays. Since there will be an increase in demand, the supply curve will also have to shift as well. With the decrease in a lot of the product’s prices, the supplier won’t want to produce as much therefore showing a decrease in production. This is why there are only a certain number of products available for purchase in stores, on Black Friday.

Overall, companies like Kohl’s and Best Buy, usually have large sales around the holidays because their products are more elastic than companies of higher name value, like Gucci. Those companies are inelastic because they are known for their high prices and uniqueness, so those companies know that during the holidays people will spend an absurd amount of money on the ones closest to them. This is why Christmas is the most wonderful time of the year.

Works Cited

Amadeo, Kimberly. “How Much Do Americans Spend on Black Friday?” The Balance. n.p. 11 Nov. 2017. 13 Nov. 2017.

hibbardj@nrf.com. “Holiday Headquarters.” National Retail Federation, 6 Oct. 2014. 13 Nov. 2017.

Quora. “What Are The Economics Behind The Black Friday Sales?” Forbes, Forbes Magazine, 27 Nov. 2013. 13 Nov. 2017.

Got Milk?

Becca Dettlaff

Got Milk?

Milk alternatives are increasing in popularity, causing the US Dairy market, milk in particular, to experience losses in their overall profit, and will continue to do so, due to consumer trends and preferences. For many years, milk alternatives have been growing in popularity whether it be for lactose allergies, health concerns, or veganism as a lifestyle. The government was one of the US Dairy markets’ best customers, and dairy in the US has been known to be inelastic because the because many dairy has been considered staple foods in the American diet. But times have begun to change and consumers are have been finding that there are many health benefits of switching to alternatives to these dairy products.

Nowadays, the demand for milk has been decreasing due to the alternatives and substitutes that are becoming available and increasing in popularity. Milks made out of nuts like almond milk, cashew milk, and even macadamia nut milk have entered the market, as well as coconut milk and soy milk. Many consumers have found there have been many health concerns related to consuming dairy products, and according to the USDA, since the 1970’s the amount of kids that have chosen to stop drinking milk daily has been rising. And because of perfect competition, it is hard for firms within the industry to compete against one another and other drinks that have been entering the market.

Unlike cheese, which consumers’ willingness to pay continually remains pretty high, people have become very price sensitive to buying milk because of all the changing in trends. Raising the prices milk would cause the demand and consumption to decrease.

Work Cited

Merlo, Catherine. “Why Dairy Demand Has Become More Elastic.” AgWeb - The Home Page of Agriculture, 5 Mar. 2015, www.agweb.com/article/why-dairy-demand-has-become-more-elastic-naa-catherine-merlo/.

Schwartz, Elaine. “Perfect Competition Can Explain Less Milk Consumption.” Econlife, 26 Oct. 2017, econlife.com/2014/06/milk-perfect-competition-limits-firms/.