Tài liệu Microeconomics for MBAs 12 docx

... Incentives Are Affected 12 12 Competition as a Form of Consumer Protection No one can reasonably expect to be protected against all the whims and exploitative efforts of businesses. The cost ... The market demand for information, like the market demand for protective bumpers, will not fully reflect its social benefits. Because of external benefits, the quantity of informati...

Ngày tải lên: 15/12/2013, 10:15

... mathematical formula for computing the present value of future costs or benefits received one year from now is PV = [1/(1 + r)] f, where PV stands for present value, r for the rater of interest, and f for ... each choice, a person must forgo one or more things for something else. All rational behavior involves a cost, which is the value of the most preferred alternative forgone....

Ngày tải lên: 15/12/2013, 10:15

... on that information. People cannot assimilate all the information they need to make rational choices, however. People do lack information, and they could make better choices if information ... does not require perfect information. People will make choices on the basis of the information they have or can rationally acquire. If they have less than perfect information, they may make mistake...

Ngày tải lên: 15/12/2013, 10:15

... tried, which forced the team members to think competitively, had median initial effort levels on par with the initial effort levels observed under forcing contracts. However, the effort level ... employed, the median “effort level” for each of the two teams started at a mere 30 (with a maximum effort level of 100), but since the students were then told how little effort other team membe...

Ngày tải lên: 24/12/2013, 17:15

... percentage of monthly sales, for the right to use a brand name and/or trademark for example, the name “McDonalds” along with the “golden arches.” Chapter 6. Reasons for Firm Incentives 32 the ... independently of market forces, at least not for long. Unless the firm is using its productive resources to produce goods and services that pass the market test, it will soon be fo...

Ngày tải lên: 24/12/2013, 17:15

... holding it, for the parties to exchange hostages. For example, if King A only has beautiful daughters then the best arrangement may be for him to ex- change a beautiful daughter for one of King ... economic cost of reducing pollution to ten units is $9,300; $1,500 for firm A. $800 for B, $3,000 each for C and D, and $1,000 for E. This figure is Chapter 7 Market Failures: Ex...

Ngày tải lên: 24/12/2013, 17:15

... There are two formulas for elasticity, one for use at specific points on the curve and one for measuring average elasticity between two points, called arc elasticity. The formula for point elasticity, ... Because there are many substitutes for orange juice—soda, wine, prune juice, and so on—we would expect the demand for orange juice to be more elastic than the demand for sa...

Ngày tải lên: 21/01/2014, 22:20

... funds at a 10 percent interest rate, for example, and invests those funds in projects that have an expected rate of return of 12 percent, the residual left for the equity owners will be the difference, ... equity come in a variety of forms. Common and preferred stock are the two major divisions of equity. Debt can take a form that has the “look and feel” of equity. For example, the...

Ngày tải lên: 21/01/2014, 22:20

... profit incentive for expansion. If it expands before other firms, its lower average total cost will allow it to make greater profits for a short period of time. Consider Figure 11.9, for instance. ... others are going to do, for one function of the market is to generate the pricing and output information people need to interact with one another. In a world of imperfect informati...

Ngày tải lên: 26/01/2014, 18:20

... same as before and are just as willing to work as before) once the additional vacation is provided: 1) the employer is willing to hire the same number of workers as before if the cost for each ... important point again will set the stage for understanding why the bigger the wage cut the better for workers. In Figure 11.15 the initial demand curve for workers (without the fringe)...

Ngày tải lên: 26/01/2014, 18:20