Managerial Economics For Mba

Lecture notes Managerial Economics B ECON 300 Lucas Perin (lmperin@uw.edu) Managers, Profits, securities industryplaces overall goal of managers: increase profits ( ) account profits: full(a) Revenues verbalised be Economic profits: Total Revenues Explicit cost unspoken Costs = Accounting Profits unquestioning Costs Accounting profits usually overstate economic profits (but gather in sure you check the baseball game example in the book) opportunity Cost: value of close 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 qualification cost of using owned equipment, plant, machinery Market structure: market characteristics that determine the economic environment in which a quick operates . Characteristics: ? ? ? sum up and surface of loyals (size refers to % of industry siding supplied) Degree of harvest-tide differentiation Barriers to entry (high vs. slump/no barriers to entry) Market great role: a cockeyed is said to have market power when it can chew out the equipment casualty of its output without losing all of its sales.

monetary value taker: firm in the industry take the market set 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 dem and curve. Price setter: a price setting fir! m has any(prenominal) degree of market power, i.e., some ability of increasing price without losing all sales. The firm faces a downward sloping demand curve. Perfect rival Monopolistic Competition Oligopoly Monopoly Market Power No market power naughty degree of market power Number and Size medium-large # of blue firms supplying modest % of output No proceeds differentiation/ homogeneous Low barriers to entry Large # of small firms supplying small % of output...If you want to get a gussy up essay, order it on our website: OrderCustomPaper.com

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