ECON 350

  1. Manager
    A manager is a person who direct resources in order to acheive a stated goal
  2. Economics
    Economics is the science of making decisions in the presence of scarce resources
  3. Opportunity cost
    Opportunity cost refers to the cost of the explicit and implicity resources that are foregone when a decision is made
  4. According to the five forces framwork, a firms ability to sustain long run economic profit depends on five key forces
    • 1. the ease or difficulty of entry
    • 2. the power of input suppliers
    • 3. the power of buyers
    • 4. the nature of industry rivalry
    • 5. presence of substitues or complements
  5. Consumer surplus
    The value consumers get from a good, but do not have to pay for
  6. Five demand shifters
    • Income
    • Substitutes
    • Consumer Expectations
    • Population
    • Advertising
  7. Six Supply Shifters
    • Input prices
    • Technology or governement regulation
    • Number of firms
    • Subsititutes in production
    • Excise and ad valorem taxes
    • Producer expectations
  8. Full economic price
    The dollar amount paid to a firm under a price ceiling plus the nonpecuniary price.
Card Set
ECON 350
ECON 350