BA 101 Lecture 2: Private Enterprise (Day 2)

• School: University of Oregon
• Department: Charles H. Lundquist College of Business
• Course: BA 101
• Professor: Steve Engel

Document Summary

Co(cid:373)petitio(cid:374) tra(cid:374)sfor(cid:373)s greedy behavior (cid:894)self i(cid:374)terest(cid:895) i(cid:374)to . Pressure for lower prices (ralph offers more fish per ear of corn) Only will exchange when you are made better off (wealth) Competition to be a part of exchanges results in. Pressure for more efficient ways to do things. To manage the economic part of your life. Uncertainty = not knowing how market will respond. Risk = damage associated w/ bad outcomes. All decisions have outcome in market (we sold 350 units, or we had profit of . 2 million) All decisions have good things & bad things. Accounting is a language that measures economic consequences of choice. To deal w/ uncertainty & risk in complex / specialized competitive markets, managers rely on: Design product / service that meets needs of market. Design process by which product or service should meet needs of task environment (low cost / high quality) Know customers & determine how to best serve them.