B200.F08.W09.CostsandCompetition.PP

B200.F08.W09.CostsandCompetition.PP - BUAD 200 Week 09...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
BUAD 200 Week 09 Chapter 12,13
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
$ P x $ 10 $ 9 $ 8 $ 7 $ 6 $ 5 $ 4 $ 3 $ 2 $ 1 1 2 3 4 5 6 7 8 9 10 11 12 Qty x /T Supply Demand D x S x At the equilibrium Price , the Dx = Sx Pe Qe
Background image of page 2
Focus on Supply $Px Qty x /T Supply
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Supply is based on Marginal Cost Supply is based on Marginal Cost $Px Qty x /T Supply Height =Marginal Cost
Background image of page 4
Teamwork 10 people run a grocery cooperative Share equally, Average daily earnings $ 2000 / 10 = $ 200 Earnings vary from day to day…
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Teamwork Shirking When earnings are shared among the team there is a tendency for shirking Shirking Decline in earnings Solutions ?
Background image of page 6
Shirking Monitoring Hire a monitor to reduce shirking Earnings go back up to $ 2000 / 11 = $ 182 Problem: the monitor shirks
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Reorganize Firm Employees get fixed wages day to day Predictability is desirable Owner begins to specialize work by worker Increased output and earnings Wages differ by difficulty of task Owner becomes the monitor Owner gets profits after wages (If any)
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/18/2008 for the course BUAD 200x taught by Professor Hergenrather during the Fall '05 term at USC.

Page1 / 37

B200.F08.W09.CostsandCompetition.PP - BUAD 200 Week 09...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online