ECON-2096EL Chapter Notes - Chapter 4: Alan Blinder, Marginal Revenue Productivity Theory Of Wages, Profit Maximization
26 Mar 2017
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Large japanese firms engaged in international trade do not seek to maximize profits rather their drive for growth leads them systematically to produce and sell more than conventional theory of profit maximization dictates. Visible hand: state of capitalism in emerging markets. Corporate ladder: company"s employment hierarchy in which carer advancement is considered to follow higher rungs on a ladder. Learning curve: the rate of a person"s (or firms) progress in gaining experience or new skills. Revenue maximization: selling at a price that maximizes the firms revenue (where the marginal revenue is zero. Corporate takeover: the purchase of a firm by another bidder, firm, or enterprise. Cost of capital: opportunity cost of making a specific investment, rate of return that could have been earned by putting the same money into a different investment. Cross-holdings: one firm owns shares in another firm (technologically determined) production function, output as a factor of inputs.
