142_1 - Industrial Organization Industrial organization(IO...

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Villas-Boas- Lecture 1 EEP 142 Page 1 Industrial Organization. Industrial organization (IO) is concerned with the workings of markets and industries. We’ll study the way firms interact and compete with each other. Perfect Competition Monopoly Industrial Organization
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Villas-Boas- Lecture 1 EEP 142 Page 2 Firms. General Motors – 335,000 employees. – Plants in 30 countries. – Sales to ~200 countries. – Equity and debt financing. Caffe Strada – ~15 employees – Single location. – Privately owned.
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Villas-Boas- Lecture 1 EEP 142 Page 3 What do GM and CS have in common? – They both transform inputs (steel, coffee beans) into outputs (vehicles, coffee drinks). – They both make decisions about pricing, new product introductions, marketing, etc. – They both have a handful of competitors (e.g. Ford, Jimmy Bean’s). – They both make decisions about what to make themselves and what to buy. • GM buys seats and makes transmissions. Why?
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Villas-Boas- Lecture 1 EEP 142 Page 4 What are Caffe Strada’s costs?
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Villas-Boas- Lecture 1 EEP 142 Page 5 A firm’s cost functions.
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This note was uploaded on 09/11/2011 for the course EEP 142 taught by Professor Villas-boas during the Spring '11 term at Berkeley.

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142_1 - Industrial Organization Industrial organization(IO...

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