Ch 9 - Organizing production

Ch 9 - Organizing production - Ch. 9: Ch. 9: Or ganizing Or...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Ch. 9: Ch. 9: Or ganizing Or ganizing Pr oduction Pr oduction Olivier Giovannoni ECO304K: I ntroduction to Microeconomics Outline Outline The previous chapters presented many definitions related to competitive markets and consumer choices. This was part I of the class. Now this chapter 9 is the introductory chapter to part I I : firms and markets. This chapter 9 is mostly concerned with definitions (the different types of firms, the firms objectives, the main factors influencing the realization of this objective) Chapter 10 is concerned with production and costs, where we will mostly talk about cost curves and introduce different types of costs. Chapter s 11 and 12 present two extreme market structures: perfect competition and monopoly Chapter 13 presents the middle grounds of monopolistic competition and oligopoly {end of part I I of the class, midterm 2} Ch. 9 Organizing production - 2 I ntr oduction I ntr oduction A fir m is an organization that employs factors of production and organizes them to produce and sell goods and services. Different views of the objectives of the firm (product quality, growth, market share, employee satisfaction). Bottom line: a fir ms objective is to maximize pr ofits. The reward of a business is called profit . Total r evenue is the revenue of sales, investments, holdings, proprietorship, patents, franchises, etc Total cost consists of all costs of production resources: payments to / for employees, raw materials, loan principal and interest, depreciation, the entrepreneurs reward as normal profit they are all opportunity costs. Economic pr ofit = total r evenue total cost (dont get mixed up: economic profit normal profit ) Ch. 9 Organizing production - 3 I ntr oduction () I ntr oduction () The firms performance is given by its own characteristics but also by 3 broad elements of its environment (details in the next 3 sections): 1. Technology (=method and organization of production) will limit or boost your production. production) will limit or boost your production....
View Full Document

Page1 / 12

Ch 9 - Organizing production - Ch. 9: Ch. 9: Or ganizing Or...

This preview shows document pages 1 - 5. Sign up to view the full document.

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