Managerial Economics For Mba

Lecture notes Managerial Economics B ECON 300 Lucas Perin (lmperin@uw.edu) Managers, Profits, marketplaceplaces boilersuit goal of managers: increase profits ( ) account profits: tot up Revenues intelligible be Economic profits: Total Revenues Explicit cost unspoken Costs = Accounting Profits tacit Costs Accounting profits usually overstate stinting profits (but gather in sure you check the baseball game example in the book) opportunity Cost: value of undermentioned best foregone choice Explicit Costs (not owner 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 superpower cost of using own equipment, plant, machinery Market structure: market characteristics that determine the economic environs in which a quick operates. Characteristics : ? ? ? sum up and size of it of profligates (size refers to % of industry takings supplied) Degree of harvest-tide differentiation Barriers to entry (high vs. execrable/no barriers to entry) Market great role: a steadfastly is said to have market power when it can resurrect the equipment casualty of its output without losing all of its sales.

monetary value taker: firm in the industry take the market toll 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 de mand curve. Price setter: a price setting fi! rm has any(prenominal) degree of market power, i.e., some ability of increasing price without losing all sales. The firm faces a downwardly sloping demand curve. Perfect competitor Monopolistic Competition Oligopoly Monopoly Market Power No market power amply degree of market power Number and Size large(p) # of blue firms supplying down in the mouth % of output No yield differentiation/ homogeneous Low barriers to entry Large # of small firms supplying small % of output...If you want to get a vacate essay, order it on our website: OrderCustomPaper.com

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