20_ProfitMaximization_ToPost

20_ProfitMaximization_ToPost - Do what you love, but be...

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Unformatted text preview: Do what you love, but be damned sure its profitable. If you do work you love, but it doesnt generate income, your business will fail. If you do work you hate, but it generates income, your health will failand your business along with it. If you cant do what you love and make it profitable, youve either got a hobby or a headache, not a sustainable business. Dont settle for anything less than passion and profit. Steve Pavlina ECON 410 Profit-Maximization 2 eRecitation Class 20 - Profit Maximization 3 Class 20 - Profit Maximization 4 Class 20 - Profit Maximization 5 Class 20 - Profit Maximization 6 Class 20 - Profit Maximization 7 Class 20 - Profit Maximization Sus tainab le Indus try Profits Power of Input Suppliers Supplier Concentration Price/Productivity of Alternative Inputs Relationship-Specific Investments Supplier Switching Costs Government Restraints Power of Buyers Buyer Concentration Price/Value of Substitute Products or Services Relationship-Specific Investments Customer Switching Costs Government Restraints Entry Entry Costs Speed of Adjustment Sunk Costs Economies of Scale Network Effects Reputation Switching Costs Government Restraints Subs titutes & Complements Price/Value of Surrogate Products or Services Price/Value of Complementary Products or Services Network Effects Government Restraints Indus try Rivalry Switching Costs Timing of Decisions Information Government Restraints Concentration Price, Quantity, Quality, or Service Competition Degree of Differentiation Cons umer Problem Cons umer Problem Producer Problem Sus tainab le Indus try Profits 8 Consumer Problem Producer Problem Decis ion-Maker: An Individual Decis ion-Maker: A Firm Preferences : Things Preferences : Profits Enjoyment: From Consuming Things Enjoyment: From Selling Things for Profit Bas is for Preferences : Willy-Nilly Bas is for Preferences : Technology, Engineering, Processes, etc. Class 20 - Profit Maximization 9 Class 20 - Profit Maximization 10 Class 20 - Profit Maximization Baseline Monopolistically Competitive Model Our Baseline Monopolistically Competitive Model (BMC) is a model of firm profit-maximizing behavior in which the following assumptions hold: 1. Consumers purchase goods according to their demand functions. 2. A firm cost-minimizes by selecting inputs according to its factor demand functions. 3. Firms select quantity (or price) to maximize their profits, where profit, , is measured as Total Revenues Total Cost....
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20_ProfitMaximization_ToPost - Do what you love, but be...

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