M B A 8620 Lecture Notes - Lecture 4: Sunk Costs, Opportunity Cost, Price Ceiling
8 Sep 2016
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About 20 to 30 questions in the quiz. Herbert simon: computer genius in the 50"s, wrote game theory, concept of bounded rationality. If the consumer sees the price without taxes he wont account for taxes and use the published price to process how expensive it is: 2 questions about the business to buy. Supply and demand: using the price control vs supply on price of gasoline. It"s a 2 step model (price ceiling is imposed and 2nd the supply curve shifts inward to the left) Tried to impose a price control on everything (raw petroleum) Decided that there was new oil and old oil. And price would affect you if you are a produced of one or the other. No price control on gasoline: using the slide of dollar index vs oil prices 1987-2015. When changes or shocks happen, check on international big news.
