Identify the knowledge/insights you think will be most useful in your own decision making from a personal perspective and a business perspective.
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To be successful leaders in the global business world of the 21st century, managers must consider economic trends, behavior, and ramifications of economic decisions. Managers must also balance the pressures to react in the short term and plan for the medium term and long term.
With this in mind, reflect on the economic theories, concepts, and strategies presented in this course as you respond to the following:
•Describe how the economic theories and principles you have studied in this course have deepened your thinking about economic behavior.
•Identify the knowledge/insights you think will be most useful in your own decision making from a personal perspective and a business perspective.
Below is some of the course information we studied please let me know if you will need additional information
• Production Theory and the Cost of Goods
Have you ever tried to book a hotel room in high season or during a popular and crowded event? The influx of people from other cities to see a concert or attend a festival brings an immense increase in the demand for hotel rooms, resulting in a corresponding increase in room rates. As soon as the event or season is over, the rates begin to stabilize to an equilibrium level. This phenomenon applies to the production of any type of good or service.
This week, you will look at the supply side of the market and examine the factors that affect the production of goods. You will also explore the effect of market equilibrium on generating economic surplus.
Application: Barriers to Entry and Product Homogeneity and Their Effects
Barriers to entry are forces that inhibit firms from entering new markets. These forces may result from practical and legal constraints. How do you think barriers to entry and product homogeneity affect the competitive nature of industries? For example, why do some agricultural products, such as wheat and soybeans, tend to fit the definition of perfectly competitive markets more than the automobile industry does? Does this mean that companies in the automobile industry do not compete with one another? In this Application, you will analyze market competition by providing examples.
Explain the nature of competition in a market that is characterized by a high barrier to entry and significant product homogeneity. Provide a detailed example, and support your point of view.
• Week 4: Market Structure
The concept of market structure is central to both economics and marketing. Basic market structures consist of perfect competition, monopoly, oligopoly, and monopolistic competition. This week, you will be introduced to imperfectly competitive market models. You may have noticed that a majority of people in the area where you live use the same gas and electric companies. This is an example of a desirable situation of imperfect competition. This week, you will also focus on how the markets served by imperfectly competitive firms differ from those served by perfectly competitive firms.
You will also examine decision making in situations in which the results depend not only on the person or firm undertaking an action but also on how the same actor relates to the actions of others. Think about how, in football or in any other game, players fine-tune their strategy by adjusting to different levels of competition, adapting the game plan to different situations and opponents. This week, you will explore how economics relates this game theory to strategic decision making.
• Application: Patents and Copyrights
Between patents and copyrights, which reflects a free market, and which is a grant of monopoly privilege by the state? Patents give inventors or developers of new products the exclusive right to sell their products for a specific time. By protecting sellers from the encroachment of competition, patents enable innovators to charge higher prices and to recover their products’ development costs. Copyrights work in a similar way, protecting the authors of software, music, movies, books, and other published works. Many people consider patents and copyrights as being equivalent. Do you think they have the same purpose and effect?
In this Application, you will analyze the economics of the purely free market. Why do you believe that most successful industrial societies offer patent and copyright protection, even though these protections enable sellers to charge higher prices? Can the sellers charge whatever they want? Why or why not? Provide an example to support your opinion.
This is some of the course information we studied.
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