文档介绍：Managerial Economics & Business Strategy
Chapter 1
The Fundamentals of Managerial Economics
Michael R. Baye,
Overview
I. Introduction
II. The Economics of Effective Management
Identify Goals and Constraints
Recognize the Role of Profits
Understand Incentives
Understand Markets
Recognize the Time Value of Money
Use Marginal Analysis
Michael R. Baye,
Managerial Economics
Manager
A person who directs resources to achieve a stated goal.
Economics
The science of making decisions in the presence of scare resources.
Managerial Economics
The study of how to direct scarce resources in the way that most efficiently achieves a managerial goal.
Michael R. Baye,
Economic vs. Accounting Profits
Accounting Profits
Total revenue (sales) minus dollar cost of producing goods or services
Reported on the firm’s e statement
Economic Profits
Total revenue minus total opportunity cost
Michael R. Baye,
Opportunity Cost
Accounting Costs
The explicit costs of the resources needed to produce produce goods or services
Reported on the firm’s e statement
Opportunity Cost
The cost of the explicit and implicit resources that are foregone when a decision is made
Economic Profits
Total revenue minus total opportunity cost
Michael R. Baye,
Market Interactions
Consumer-Producer Rivalry
Consumers attempt to locate low prices, while producers attempt to charge high prices
Consumer-Consumer Rivalry
Scarcity of goods reduces the negotiating power of consumers as pete for the right to those goods
Producer-Producer Rivalry
Scarcity of consumers causes producers pete with one another for the right to service customers
The Role of Government
Disciplines the market process
Michael R. Baye,
The Time Value of Money
Present value (PV) of an amount (FV) to be received at the end of “n” periods when the per-period interest rate is “i”:
Examples?
Michael R. Baye,
Present Value of a Series
Present value of a stream of future amounts (FVt) received at the end