MGMT 4A Chapter Notes - Chapter 2: Perfect Competition, Monopolistic Competition, Public Finance
Document Summary
Module 1: an introduction to microeconomics for managers. Has little to do with the reality of economy today. Economic analysis can evaluate competing cost and benefits of political choices. Module 2: microeconomics in our everyday business and personal lives. Why is cereal so expensive if it"s just grain and sugar. Why do they sell you beer that makes you fat but shows that you are a buff manly guy for drinking. Sometimes buying a more expensive item can save more money. Energy efficient is probably cheaper over a 10 year time period. She concluded that an mba is well worth it over the next three years. Argues that self-interest market behavior leads to an efficient market outcome for all. Free market vision is hard to find in the real world. Highly competitive in farming and mining (basic commodities) Oligopoly = an industry structure characterized by small number of larger firms.
