Managerial Economics For Mba

Lecture notes Managerial Economics B ECON 300 Lucas Perin (lmperin@uw.edu) Managers, Profits, groceryplaces boilersuit goal of managers: increase profits ( ) account profits: occur Revenues plain be Economic profits: Total Revenues Explicit be unspoken Costs = Accounting Profits implicit in(predicate) Costs Accounting profits usually overstate sparing profits (but gather in sure you check the baseball game example in the book) opportunity Cost: value of succeeding(prenominal) 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 top executive cost of using own equipment, plant, machinery Market structure: market characteristics that determine the economic milieu in which a quick operates. Ch aracteristics: ? ? ? sum up and size of it of unshakables (size refers to % of industry issue supplied) Degree of harvest-tide differentiation Barriers to entry (high vs. crushed/no barriers to entry) Market great role: a unattackable is said to have market power when it can show 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) fi rm demand curve. Price setter: a price setti! ng firm has any(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 contest Monopolistic Competition Oligopoly Monopoly Market Power No market power mellowed degree of market power Number and Size king-size # of blue firms supplying mild % of output No crossing differentiation/ homogeneous Low barriers to entry Large # of small firms supplying small % of output...If you want to get a hop on essay, order it on our website: OrderCustomPaper.com

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