How baking and Economics go hand-in-hand
Virutal Advent Calendar:
If I can just last one more day, then all shall be well.
It’s finals week and I would like to say that I have been studying hard,
however, if you wanna count:
“Staring blankly at your notes”
as being a most studious student, then yes, yes you better believe I’m ready for my tests!
How about we revisit our song for “The 12 Days of Christmas Cookies”
as a way for me to take my mind off it all:
You know, eggnog cookies are a lot like Economics.
You (the baker) set out to buy all of your ingredients at WholeFoods (the market).
You have no control over the market prices.
You go to the store, are told how much eggnog, flour, etc. is, and you buy it.
You do this because you do not set the prices.
The market does (the Price Maker).
You go home, follow your favorite eggnog cookie recipe,
and hope that the inputs used to make the dough
create an incredible cookie output.
The secret to knowing you gained a profit in your baking skills, you ask?
When the Marginal Revenue (complete and utter satisfaction in taste)
is greater than the Marginal Cost (the amount of time taken to make said delicious cookies),
you the baker know that you have one positive product (baked good).
This is great economic news for the baker.
***I also drew a Supply & Demand graph for all of you to fully comprehend the complexities:
If the demand for eggnog cookies goes up,
we now have a decrease in the supply of cookies.
Translation: Make some irresistably delicious cookies and soon enough,
you won’t have any cookies left (the supply runs out).
So what does any of this mean?
I have no idea.
My Economics final is tomorrow
and this is about as good as I’m undertanding any of this…
Not sure if I made any sense
(((wouldn’t be the first test of the semester that I did poorly on)))
but you can check out Brooke’s blog for
a more comprehensive and coherent post on eggnog cookies–
hers are sooooo cute too!
She used a cookie press (fancy!) to form the cutest shapes
(Economics not included).