MGTA02H3 Lecture Notes - Fixed Cost, Direct Market
!"#$%&'()(*(+',-,./(#.0(1,2%',34%,./(56602(#.0(7&'8,-&2(
+',-,./(93:&-%,8&2(#.0(;66<2(
+',-,./(!"#$%&'&()"*+,-"-+$"%./0,(1"*&22"3$%$&4$"&("$5%+,()$"6.3"&-7"03.'8%-9""
+',-,./(%6(=&&%(>42,.&22(93:&-%,8&2(
+',-,./(93:&-%,8&2"!":.,27"-+,-"03.'8%$37"+.0$"-.",--,&("&("03&%&()"03.'8%-7"6.3"7,2$9";-"&7"878,221"6.3"/,5&/&<&()"03.6&-79""
= >./$"6&3/7"*,(-"-."'./&(,-$"-+$"/,3?$-".3"7$%83$"+&)+"/,3?$-"7+,3$9"
= @3&%&()"'$%&7&.(7",3$",27."&(628$(%$'"A1"-+$"($$'"-."7834&4$"&("-+$"/,3?$-02,%$B"A1"7.%&,2",('"$-+&%,2"%.(%$3(7B"
,('"$4$("A1"%.30.3,-$"&/,)$9""
+'6?,%@=#A,B,C,./(93:&-%,8&2(
= ;6"03&%$7",3$"7$-"-.."2.*B"-+$"%./0,(1"*&22"7$22"/,(1"8(&-7".6"&-7"03.'8%-B"A8-"&-"/,1"/&77"-+$".00.3-8(&-1"-."/,?$"
,''&-&.(,2"03.6&-".("$,%+"8(&-"!",('"/,1"&("6,%-"2.7$"/.($1".("$,%+"$5%+,()$9"
= ;6"03&%$7",3$"-.."+&)+B"-+$"%./0,(1"*&22"/,?$","2,3)$"03.6&-".("$,%+"&-$/"A8-"*&22"7$22"6$*$3"8(&-7B"3$782-&()"&("
$5%$77"&(4$(-.31",('","($$'"-."3$'8%$"03.'8%-&.(".0$3,-&.(79""
= C.",4.&'"-+$7$"03.A2$/7B"%./0,(&$7"-31"-."7$-"03&%$7"-."7$22"-+$"(8/A$3".6"8(&-7"-+,-"*&22")$($3,-$"-+$"+&)+$7-"
0.77&A2$"-.-,2"03.6&-79"
= ;("%,2%82,-&()"03.6&-7B"/,(,)$37"*$&)+"3$%$&0-7",),&(7-"%.7-7"6.3"/,-$3&,27",('"2,A.83"-."%3$,-$"-+$"03.'8%-9"D8-"
-+$1",27."%.(7&'$3"-+$"%,0&-,2"3$7.83%$7"E02,(-",('"$F8&0/$(-G"-+,-"-+$"%./0,(1"/87-"-&$"80"-.")$($3,-$"-+,-"
2$4$2".6"03.6&-9"C+$"%.7-7".6"/,3?$-&()"E78%+",7"/,&(-,&(","2,3)$"7,2$7"7-,66G"%,(",27."A$"78A7-,(-&,29"
+',-,./(?6'(D@>42,.&22(93:&-%,8&2(
= H,(1"I=D87&($77$7",3$"2.*$3&()"A.-+"%.7-7",('"03&%$7"A$%,87$".6"-+$"&(-$3($-J7"8(&F8$"/,3?$-&()"%,0,A&2&-&$79"
= D$%,87$"-+$"*$AB"6.3"$5,/02$B"-10&%,221"03.4&'$7","/.3$"'&3$%-"2&(?"A$-*$$("03.'8%$3",('"82-&/,-$"%.(78/$3B"
A81$37",4.&'"-+$"%.7-7"$(-,&2$'"A1"*+.2$7,2$37",('"3$-,&2$379"
= K(.-+$3" 6,%-.3" &("2.*$3" &(-$3($-" 03&%$7" &7" -+$" $,7$" .6" %./0,3&7.("7+.00&()9" @.&(-=,('=%2&%?" 7+.00&()" &7" /8%+"
/.3$"$66&%&$(-"-+,("'3&4&()"63./"7-.3$"-."7-.3$"&("7$,3%+".6"-+$"A$7-"03&%$9"
= D.-+"%.(78/$37",('"A87&($77$7"%,("6.3%$"2.*$3"03&%$7"A1"L.&(&()"-.)$-+$3"&("-+$"&(-$3$7-".6")3$,-$3"083%+,7&()"
0.*$39"
= >./$"7/,22"A87&($77$7",3$"L.&(&()"6.3%$7".("-+$"&(-$3($-"-."($).-&,-$"2.*$3"03&%$7"6.3"$/02.1$$"+$,2-+"%,3$9"
=#'E&%(7"#'&(93:&-%,8&2(
= C+$1",3$"*&22&()"-.",%%$0-"/&(&/,2"03.6&-7"!"$4$("2.77$7"!"-.")$-"A81$37"-."-31"03.'8%-79""
= =#'E&%(7"#'&"!"K"%./0,(1J7"0$3%$(-,)$".6"-+$"-.-,2"/,3?$-"7,2$7"6.3","70$%&6&%"03.'8%-9""
= I4$("*&-+"$7-,A2&7+$'"03.'8%-7B"/,3?$-"7+,3$"/,1".8-*$&)+"03.6&-7",7","03&%&()".AL$%-&4$9""
= M.3"$5,/02$B" './&(,-&()","/,3?$-"/$,(7"-+,-"%.(78/$37",3$"/.3$"2&?$21"-."A81"&-"A$%,87$"-+$1",3$"6,/&2&,3"
*&-+","*$22=?(.*(B"+&)+21"4&7&A2$"03.'8%-9"
9%"&'(+',-,./(93:&-%,8&2(
= #83&()"'&66&%82-"-&/$7B"6.3"&(7-,(%$B"2.77"%.(-,&(/$(-",('"7834&4,2"/,1"A$%./$","%./0,(1J7"/,&(".AL$%-&4$79""
www.notesolution.com
+',-&@7&%%,./(;66<2(
= H,(,)$37"/87-"/$,783$"-+$"0.-$(-&,2"&/0,%-"A$6.3$"'$%&'&()".("6&(,2"03&%$79""
= N.7-=O3&$(-$'"@3&%&()",('"D3$,?=I4$("K(,217&7"!"C+$7$"-..27",3$"%./A&($'"-."&('$(-&61"03&%$7"-+,-"*&22",2.*"-+$"
%./0,(1"-."3$,%+"&-7".AL$%-&4$79"
!62%@9',&.%&0(+',-,./(
= ;-"%.(7&'$37"-+$"6&3/J7"'$7&3$"-."/,?$","03.6&-",('"-,?$7"&(-.",%%.8(-"-+$"($$'"-."%.4$3"03.'8%-&.("%.7-79""
=#'E4$(+&'-&.%#/&(F(=#'E4$(G(7#<&2(+',-&(
!"#$%&'()*+,-.%(/)
>'&#E@D8&.(H.#<I2,2J(!62%@K6<4B&@+'6?,%(L&<#%,6.2",$2(
= P7&()"%.7-=.3&$(-$'"03&%&()B","6&3/"*&22"%.4$3"&-7"K#',#3<&(!62%2"!"N.7-7"-+,-"%+,()$"*&-+"-+$"(8/A$3".6")..'7".3"
7$34&%$7"03.'8%$'".3"7.2'9""
= ;-"*&22",27."/,?$"7./$"/.($1"-.*,3'"0,1&()"&-7"M,A&0(!62%2"!"N.7-7"-+,-",3$"8(,66$%-$'"A1"-+$"(8/A$3".6")..'7"
.3"7$34&%$7"03.'8%$'".3"7.2'9""
>'&#E@D8&.(H.#<I2,2"!"K(",77$77/$(-".6"+.*"/,(1"8(&-7"/87-"A$"7.2'",-",")&4$("03&%$"A$6.3$"-+$"%./0,(1"A$)&(7"-."
/,?$","03.6&-9""
>'&#E@(D8&.(+6,.%"!"C+$"(8/A$3".6"8(&-7"-+,-"/87-"A$"7.2'",-",")&4$("03&%$"A$6.3$"-+$"%./0,(1"%.4$37",22".6"&-7"4,3&,A2$"
,('"6&5$'"%.7-79""
>'&#E@D8&.(+6,.%(,.(N.,%2(F(;6%#<(M,A&0(!62%2(G(O+',-&(*(K#',#3<&(!62%P(
(
+',-,./(7%'#%&/,&2(#.0(;#-%,-2(
+',-,./(7%'#%&/I"!"@3&%&()",7"02,((&()",%-&4&-1"-+,-",66$%-7"-+$"/,3?$-&()"/&59""
+',-,./(;#-%,-2"!"Q,17"&("*+&%+"/,(,)$37"&/02$/$(-","6&3/J7"03&%&()"7-3,-$)&$79""
+',-,./(7%'#%&/,&2(
= RN,(","/,(,)$3"3$,221"&'$(-&61","7&()2$"SA$7-J"03&%$"6.3","03.'8%-TU"V.9"
= >./$"03.'8%-7"7.2'"6.3"-*&%$"-+$"03&%$".6".-+$3"03.'8%-7"*&-+"7&/&2,3"03.0$3-&$79"
= >8%+"'&66$3$(%$7"/,1"3$62$%-"7./$"'&66$3$(%$7"&("03.'8%-"%.7-7B"A8-"-+$"&778$"&7"/.3$"%./02$5"-+,("-+,-9"
= >8%+"*&'$"03&%$"'&66$3$(%$7"3$62$%-"'&66$3&()"A3,('"&/,)$7"-+,-",--3,%-"'&66$3$(-"-10$7".6"%87-./$379"
= ;("-83(B"-+$7$"&/,)$7"3$62$%-"4,7-21"'&66$3$(-"03&%&()"0+&2.7.0+&$7",('"7-3,-$)&$79""
= RW87-"+.*"&/0.3-,(-"&7"03&%&()",7" ,("$2$/$(-"&("-+$"/,3?$-&()"/&5TU""D$%,87$"03&%&()"+,7" ,"'&3$%-",('"4&7&A2$"
&/0,%-".("3$4$(8$7B"&-"&7"$5-3$/$21"&/0.3-,(-"-.".4$3,22"/,3?$-&()"02,(79""
"
"
www.notesolution.com
+',-&(DA,2%,./(+'604-%2(
= K"6&3/"%,("7$-"03&%$7"6.3"&-7"03.'8%-7",012()03$4,&2&()"/,3?$-"03&%$7"6.3"7&/&2,3"03.'8%-7B"0(%13"-+$"03$4,&2&()"
03&%$B".3",4"-+$"03$4,&2&()"03&%$9""
= N./0,(&$7"03&%&()",A.4$"-+$"/,3?$-"02,17".("%87-./$37J"A$2&$67"-+,-"+&)+$3"03&%$"/$,("+&)+$3"F8,2&-19""
= ;("7./$"&('87-3&$7B","'./&(,(-"6&3/"$7-,A2&7+$7"03.'8%-"03&%$7",('".-+$3"%./0,(&$7"6.22.*",2.()9""
= +',-&( Q�&'2",$"!"C+$"'./&(,(-"6&3/"&("-+$"&('87-31"$7-,A2&7+$7"03.'8%-"03&%$7",('".-+$3"%./0,(&$7"6.22.*"
78&-9"E#.(J-"%.(687$"-+&7"*&-+"S@3&%$"M&5&()J"*+&%+"&7"-+$"&22$),2"03&%$7".6"03.'8%$37",)3$$&()",/.()"-+$/7$24$7"
*+,-"03&%$7"*&22"A$"%+,3)$'G9""
= @3&%$" X$,'$37+&0"&7" .6-$("$4&'$(-"&("03.'8%-7"78%+",7"7-38%-83,2"7-$$2B" ),7.2&($B" ,('"/,(1"03.%$77$'"6..'7"
A$%,87$"-+$7$"03.'8%-7"'&66$3"2&--2$"&("F8,2&-1"6.3/".($"6&3/"-.",(.-+$39""
= N./0,(&$7"%./0$-$"-+3.8)+",'4$3-&7&()"%,/0,&)(7B"0$37.(,2"7$22&()B",('"7$34&%$"!"(.-"03&%$9""
+',-,./(R&S(+'604-%2((
= C*."%.(-3,7-&()"03&%&()"0.2&%1".0-&.(7Y"N./&()"&("*&-+"$&-+$3","4$31"+&)+"03&%$".3","4$31"2.*".($9""
= +',-&(7E,BB,./(7%'#%&/I(!"C+$"'$%&7&.("-."03&%$","($*"03.'8%-",7"+&)+",7"0.77&A2$"-."$,3("-+$"/,5&/8/"03.6&-"
.("$,%+"8(&-"7.2'9""
= >?&//&()"*.3?7".(21"&6"/,3?$-$37"%,("%.(4&(%$"%.(78/$37"-+,-","03.'8%-"&7"-3821"'&66$3$(-"63./"-+.7$",23$,'1"
.("-+$"/,3?$-9"!"#$%&'()*+,-.%(/"
= +&.&%'#%,6.(+',-,./(7%'#%&/I"!"C+$"'$%&7&.("-."03&%$","($*"03.'8%-"4$31"2.*"-."7$22"-+$"/.7-"8(&-7"0.77&A2$",('"
-."A8&2'"%87-./$3"2.1,2-19";-"7$$?7"-."%3$,-$"%.(78/$3"&(-$3$7-",('"7-&/82,-$"-3&,2"083%+,7$79"
+',-,./(;#-%,-2(
= @3&%$"X&(&()B"@71%+.2.)&%,2"@3&%&()B"#&7%.8(-&()"
+',-&(Q,.,./(
+',-&(Q,.,./"!"C+$"03,%-&%$".6".66$3&()",22"&-$/7"&("%$3-,&("%,-$).3&$7",-","2&/&-$'"(8/A$3".6"03$'$-$3/&($'"03&%$"0.&(-79""
= N./0,(&$7"7$22&()"/82-&02$"&-$/7"&(","03.'8%-"%,-$).31".6-$("87$"03&%$"2&(&()9""
= C+3$$".3"6.83"03&%$"0.&(-7",3$"7$-",-"*+&%+","0,3-&%82,3"03.'8%-"*&22"A$"7.2'9"
+2I-"6<6/,-#<(+',-,./(
+2I-"6<6/,-#<(+',-,./"!"C+$"03,%-&%$".6"7$--&()"03&%$7"-."-,?$",'4,(-,)$".6"-+$"(.(=2.)&%,2" 3$,%-&.(7" .6" %.(78/$37" -."
%$3-,&("-10$7".6"03&%$79"
= ;-"-,?$7",'4,(-,)$".6"-+$"6,%-"-+,-"%87-./$37",3$"(.-"%./02$-$21"3,-&.(,2"*+$("/,?&()"A81&()"'$%&7&.(79""
900@D8&.(+',-,./"!"K"6.3/".6"071%+.2.)&%,2"03&%&()"&("*+&%+"03&%$7",3$"(.-"7-,-$'"&("$4$("'.22,3",/.8(-79""
= N87-./$37"3$),3'"03&%$7".6"Z[\",7"7&)(&6&%,(-21"+&)+$3"-+,("Z]9]^9"
1,2-64.%,./(
1,2-64.%(!"K(1"03&%$"3$'8%-&.(".66$3$'"A1"-+$"7$22$3"-."0$378,'$"%87-./$37"-."083%+,7$","03.'8%-9""
= C."7-&/82,-$"7,2$79"
www.notesolution.com
1
MGTA02H3 Full Course Notes
Verified Note
1 document
