COMM 295 Final: COMM 295 - Final Exam Review
Document Summary
Managers allocate limited resources available to them to achieve the firm"s objectives. Ceo focuses on maximizing profit by instructing individual departments/divisions: how is a firm positioned in the market compared to competitors. Marginal reasoning: considering the effect of a small change: how to produce, what prices to charge, etc. Model: description of a relationship between two or more variables. Includes only the vital info, leaving out less important information. Economic theory: development and use of a model to test hypotheses: theories are used until the evidence is refuted or a better model is developed. Positive statement: a testable hypothesis about facts (cause-and-effect) relationships. Normative statement: the belief that something is good or bad (should, maybe, could, etc. ) Demand determinants: price, income, alternatives, compliments, tastes, info, government, other factors. Individual demand curves are summed in order to determine the market demand. Supply determinants: production costs, technological advances, government rules/regulations.
