MGCR 293 Lecture 2: MGCR 293 Lecture 2

• School: McGill University
• Department: Management Core
• Course: MGCR 293
• Professor: Kamal Salmasi

Document Summary

Measures of profit: accounting profit, historical costs/revenues, legal and reporting requirements, things that have been recorded in companies books, price always remains the same (at the time u bought it) nothing to do with market price, profit based on historical costs, economic profit, market value, opportunity, or implicit costs i. 1: producing products that are better than existing products in terms of functionality, technology and style, risk taking, future outcomes and their likelihoods are unknown, as are the reactions of rivals, calculated, exploiting market inefficiencies, building barriers to entry (ex: oligopolies) , employing sophisticated pricing strategies, diversifying and making good strategic production decisions. 1: tastes and preferences, branding: use of advertising, differentiation, product quality, better customer service and so forth to create a strong brand images that buyers have a strong preference for their goods, price of related goods, complements, substitutes, expectations, future prices and product availability b.