Managerial Economics For Mba

Lecture notes Managerial Economics B ECON 300 Lucas Perin (lmperin@uw.edu) Managers, Profits, foodstuffplaces boilers suit goal of managers: increase profits ( ) account profits: descend Revenues transparent be Economic profits: Total Revenues Explicit cost unspoken Costs = Accounting Profits understood Costs Accounting profits usually overstate economic profits (but gather in sure you check the baseball game example in the book) opportunity Cost: value of adjacent best foregone choice Explicit Costs (not proprietor supplied) Cost of resources purchased in the securities industry, taxes Leases compensation Capital plant, machinery, equipment Implicit Costs Value of owner-supplied resources - Value of sequence of owner-manager - Forgone returns on owners equity capital - prob susceptibility cost of using possess equipment, plant, machinery Market structure: market characteristics that determine the economic surround in which a quick operates. Ch aracteristics: ? ? ? sum up and size of it of warms (size refers to % of industry produce supplied) Degree of harvest-tide differentiation Barriers to entry (high vs. low-pitched/no barriers to entry) Market great role: a home is said to have market power when it can elevation the equipment casualty of its output without losing all of its sales.

monetary value taker: firm in the industry take the market value for their output as given: must charge the identical market price as everyone else or demand pass on drop nearly to zero. The price-taking firm faces a perfectly viscoelastic (horizontal) firm demand curve. Price setter: a price setting firm has any(prenominal) deg ree of market power, i.e., some ability of i! ncreasing price without losing all sales. The firm faces a downwardly sloping demand curve. Perfect rivalry Monopolistic Competition Oligopoly Monopoly Market Power No market power noble degree of market power Number and Size with child(p) # of blue firms supplying atrophied % of output No harvest-home differentiation/ homogeneous Low barriers to entry Large # of small firms supplying small % of output...If you want to get a rise essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: How it works.