Unit #1 Reflection Blog

The Cheesecake Factory Cheesecakes are very tasty having over 300 kinds; however after eating 1 cheesecake, the marginal benefit begins to go down, with the cost being that the more cheesecake I eat, the more conscious I am at the fact that cheesecake is fattening and degenerating my health. The marginal benefit still stands that with the first cheesecake I eat because I find it very tasty and i will continue to eat in order to self optimize  my want of eating cheesecake. The Cheesecake factory uses the 4 factors of production which are land, capital, labor, and entrepreneurial ability. Land: The company has a chain restaurant around major cities all around the United States. Capital: The restaurants use tools and machines to mix flour and ingredients, and using cake decorating tools. Labor: Every restaurant is equipped with a full personnel of waiters and waitresses and chefs. Entrepreneurial Ability: The company recognizes that consumers do not want to be faced with the first world problem of choosing from a small dessert menu so they made sure to have a very large, menu. Adding on to that, The Cheesecake Factory has an absolute advantage which is an entire advantage in production over most restaurants around the US in making different types of cheesecakes with most restaurants making 1-4 desserts while the Cheesecake Factory makes well over 250. This company addresses the issue of scarcity in that they knew that consumers often face the problem of choosing desserts from a very limited menu, so to innovate on this, they have a menu of over 250 cheesecake types. The "invisible hand" is said that the firms and resource suppliers that seek to further their own self-interests in competitive markers to also promote the interests of society. Which relays back to the fact that The Cheesecake Factory recognized that people were often left with an empty feeling of not being able to choose from more than just a couple of choices, so they wanted to solve that problem by having one of the biggest dessert menus ever, trying to appease the human mind by having a bountiful menu full of dessert choices. Circular flow for the company: The household gives labor to the Cheesecake Factory in the form of waiters, managers, chefs and janitors, While the company pays these workers in wages, thereby receiving their income. The resources sent to the company are in the form of cake materials, dinner and lunch foods. The company also gives the households in goods/services by people attending their facilities receiving waiter care and receiving their orders and foods. The consumers or customers make the trade off by exchanging their currency or monetary values in physical form in exchange for the services of waiters, and the food consumables.