involves getting into a new market

Page 1 of 2 Elizabeth, Gail, Andrew, Maria, Warren, Narrator, Clark, Ethel,

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Elizabeth: -and it involves getting into a new market. Gail: Okay, let’s go to it. Andrew: If the main issue is control, there’s ways to protect ourselves and

our interests. Elizabeth: This is my company. Maria: And if heads are going to roll, they say start at the top. Warren: Yes! Narrator: Welcome to the Mastering Economics episode “Economic Way of

Thinking”. Elizabeth: All right, look, we’ve had our successes, but now we have to look

to the future. What’s going to help us grow? Turn us into a mighty oak?

Maria: Fertilizer. Elizabeth: No, come on. No, branching out. Trees need to branch out. If

they’re confined they’ll die. Andrew: Or grow in a very straight line. Maria: Boring. Elizabeth: All right, look, we are operating on a super highway. The

possibilities for us are fairly endless. We sell books; now why not sell e-books? What about streaming audio and video? We could offer that.

Andrew: I think we need to be broader than that. I mean what’s cutting

edge? Hip? Hot? Online gaming is riding a wave. MP3 files are the preferred way to listen to use music.

Clark: I agree. Expanse into new ventures is always popular with

investors when you’re going for the IPO. Ethel: But we’re not settled on an IPO yet, are we? Elizabeth: No, no. Not yet. Not yet.

Page 2 of 2 Elizabeth, Gail, Andrew, Maria, Warren, Narrator, Clark, Ethel,

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Clark: But if we continue to grow we will need to raise capital, and unless someone’s been hiding a wealthy relative somewhere, it’s going to be an IPO.

Ethel: We’re talking about expanding so quickly. Clark: Which means that everyone in this room is going to make a lot of

money. Warren: Here here. Clark: Especially – especially Diamond Liz. Elizabeth: Oh, well, Diamond Liz. [Change Scenery] Warren: So you’re saying we don’t have any money. Is that why we have

these so-called sandwiches for lunch? Ethel: Listen, new development is the key to the future. Andrew: Grow or die, that’s how dot-coms work. Elizabeth: Well, we’re all in agreement about that, Andrew. But we just

don’t have the funds to bring in new people for all these new ventures right now.

Andrew: Well I just don’t want the competition to leave us in the dust. Elizabeth: I understand that, but Maria and I feel that we have existing

employees that we could bring up and put into these positions without upending the bottom.

Warren: Whoa. That’s going to cost you something, Liz. I mean you’ve

got this lineup that works, you can’t just mess with it without expecting some consequences. You know, nothing’s for free.

Andrew: Oh, except this hockey puck. I mean lunch. Narrator: Now move on to the brief summary of concepts and then to the

interactive exercises. [End of Audio]