Three Business World Lessons for introductory Economics

Abstract

To demonstrate applications of economics to real life, and especially to the business world, we present the stories of three popular businesses that have faced challenges, made mistakes, and experienced success during their business journey. For each company-Dr. Martens, Toys "R" Us, and Lululemon, we have developed a lesson plan in which we elaborate on how the company operates and how economics can explain its success and decline. The teaching guides can be easily used in introductory economics courses to learn fundamental concepts such as the supply and demand model, product differentiation, monopolistic competition, oligopoly, barrier to entry, costs, innovation, going-out-of-business, patents, and brands. Through teaching in a way that resonates with a business-minded generation of students and helping them recognize the applicability of economics to the real world, this paper provides an opportunity for economics educators to increase interest and engagement. Furthermore, by emphasizing not only the success but also the obstacles that established businesses have experienced, we aim to inspire entrepreneurial spirit in students and build their resilience.

Keywords: foundation economics, entrepreneurship, business, teaching economics