6 Economic Perspective

6 Economic Perspective - • A skilled programmer or...

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Click to edit Master subtitle style Economic Perspective Profit and Competition
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Firm Profit What will an action or actions do to Profit What is profit? PROFIT = REVEUE – COST Revenue = Money that comes in Cost = Money that flows out as part of Business
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Revenue The Income from Operations We want to Increase this as much as possible. Most increases in Revenue have a cost Advertising a product Increasing production increases cost There is no “Free Lunch”!
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Costs What are costs? Costs of Resources (Land Labor Capital) What about TECHNOLOY? Costs of Understanding your market Marketing Costs of increased competition Success Breeds Competition Increased Regulation Success means people will be watching
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Increased Costs Resources are limited and as you (and others) demand more of them you push the price up. Specially skilled employees
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Unformatted text preview: • A skilled programmer or Manager – Hard to find Natural Resources • Chromium, or Petroleum – Limited production machines • Reactor Vessels Marketing As we will see in more detail later marketing is more than just Super Bowl Ads- Understanding who wants your good- Understanding the life cycle of your good.-Understanding how your good reacts to changes in price.- The Cost of new markets. Competition What will my competition do when I change what I’m doing? • What if I lower price? • What if I change my good? • What if I raise my price? • What if I introduce a new good? • Can I buy my competition? The area of Game Threory Government In a perfect World: Government Protects Property Rights Physical Property Land, and Machines Intellectual Property Patents, Copy rights and Service Marks...
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This note was uploaded on 08/25/2011 for the course BUS 101 taught by Professor Rollins during the Spring '08 term at Miami University.

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6 Economic Perspective - • A skilled programmer or...

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