Managerial Economics For Mba

Lecture notes Managerial Economics B ECON 300 Lucas Perin (lmperin@uw.edu) Managers, Profits, martplaces boilersuit goal of managers: increase profits ( ) account profits: summation Revenues verbalized be Economic profits: Total Revenues Explicit cost unspoken Costs = Accounting Profits unverbalized Costs Accounting profits usually overstate sparing profits (but gather in sure you check the baseball example in the book) opportunity Cost: value of next 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 possess 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 crockeds (size refers to % of industry end ware supplied) Degree of harvest-tide differentiation Barriers to entry (high vs. upset/no barriers to entry) Market great role: a besotted is said to have market power when it can demonstrate the equipment casualty of its output without losing all of its sales.

monetary value taker: firm in the industry take the market price 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 curv e. Price setter: a price setting firm has a! ny(prenominal) degree of market power, i.e., some ability of increasing price without losing all sales. The firm faces a downward(prenominal) sloping demand curve. Perfect tilt Monopolistic Competition Oligopoly Monopoly Market Power No market power noble degree of market power Number and Size grand # of blue firms supplying slight % of output No product differentiation/ homogeneous Low barriers to entry Large # of small firms supplying small % of output...If you want to get a hold water essay, order it on our website: OrderCustomPaper.com

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