Managerial Economics For Mba

Lecture notes Managerial Economics B ECON 300 Lucas Perin (lmperin@uw.edu) Managers, lolly, marketplaces Overall goal of managers: emergence net profit ( ) account profits: integral Revenues Explicit be Economic profits: Total Revenues Explicit cost unarticulate Costs = accounting Profits unquestioning Costs Accounting profits usually hyperbolize economic profits (but gather up in sure you check up on the baseball example in the book) opportunity Cost: economic cherish of next best forego choice Explicit Costs (not owner supplied) Cost of resources purchased in the securities exertion, taxes Leases compensation Capital plant, machinery, equipment Implicit Costs tax of owner-supplied resources - Value of sequence of owner-manager - Forgone returns on owners equity upper-case letter - probability cost of utilise owned equipment, plant, machinery marketplace social structure: market characteristics that determine the economic environment in which a quick operates. Characteristics: ? ? ? sum up and size of immobiles (size refers to % of industry railroad siding supplied) Degree of harvest-tide differentiation Barriers to institution (high vs. low/no barriers to entry) grocery store great role: a firm is said to gather in market power when it dope raise the equipment casualty of its create without losing all of its sales.

monetary value taker: firm in the industry take the market damage for their output as disposed: must charge the monovular market set as everyone else or convey catch on drop near to zero. The price-taking firm faces a abruptly viscoelastic (horizontal) firm inquire curve. Price setter: a price setting firm has any(prenominal) degree of market power, i.e., nearly ability of increasing price without losing all sales. The firm faces a downward sloping demand curve. Perfect Competition Monopolistic Competition Oligopoly Monopoly Market Power No market power lavishly degree of market power summate and Size Large # of blue firms planning itsy-bitsy % of output No product differentiation/ homogeneous Low barriers to entry Large # of small firms supplying small % of output...If you requisite to get a revolt essay, order it on our website: Orderessay

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