MBA 815 - Scarcity Limited recourse and unlimined wants...

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Scarcity Limited recourse and unlimined wants Scarcity- choices- opportunity cost Opportunity cost : the highest valued alternative forgone in using a resource value to society Resource ------ project a = 200,00 B= 300,00 C=190,000 D=400,000 Any choice have the same opportunity cost is 400,000 Rule of rational choice : Choose actions for which marginal expected benefit exceeds marginal expected cost Profit-seeking firms Public sector Non-for-profit sectors Two branches of economics Macroeconomics : how much total Microeconomics: small group Areas of specialization in economics Managerial economics . international economics:finance and trade ……………… Managerial economics: The study of how to direct scarce resources in the way that most efficiently achieves a managerial goal Tools Profit-seeking firms Public and non-for-profit sectors Profit =revenue – cost Revenue enhancing (sheng) Cost control (jiang)
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Every company have a given cost maximize total production (output) Given output, minimize the cost . Given resource , maximize profit
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This note was uploaded on 12/13/2009 for the course MBA 815 taught by Professor Dr.terry during the Spring '09 term at Fort Hays.

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MBA 815 - Scarcity Limited recourse and unlimined wants...

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