microeconomics chapter 11,12,13,14,15

pure perfect

competition among few

race, religion, age, national origin, gender, health

lack of proper management communication

producing joint products you can lower cost for both products

innovator, risk taker, you make decisions

once you have mastered learning by doing you can contribute your expertise

1. patent(right over product for 17 years)
2. copyright(protects visual and audio)
3.trademark(visual image of company or product)
4.control resources
5.being a low cost producer
6.illegal(murder, arson)

price maker, many competitors, easy entry and difficult exit, homogeneous product, advertise

1. separate buyers into groups
2. items sold cant be resold for a higher price
3. must determine "consumer willingness"

1. charge highest price
2. charge different prices in the same location
3. charge different prices in different geographical areas

1. price maker
2. few competitors
3. difficult entry and exit
4. produce homogeneous
5. advertise

1. price taker
2. large number of competitors
3. easy entry and exit
4.homogenious product
5. limited info advertising

1. technical- use the fewest inputs to create an output
2. economic- produce an output at the lowest cost

1. price taker
2. large number of competitors
3. easy entry and exit
4.homogenious product
5. no advertising

found in industries that have high technology, and high investments

1 firm dominates industry

1. accounting- only consider explicit values
2. economist- consider explicit and implicit values

competition

1. nominal- average return to owner
2. economic-above average return to owner

single buyer of a resource

1.noncollusive- members don't work together, will follow a price decrease but not increase
2.collusive- members do work together (cartel-sets price and quantity limit, cheats on quantity, life only 7-14 years)
3. price leader-1 firm dominates industry

don't charge highest price(just a high one), doesn't always make a profit(losses too), not just interested in "per unit profit"(interested in total profit)

1. price maker
2. no close substitues
3. difficult enter and exit
4. 'goodwill advertising"

single seller of a product

they must always think about controlling cost

price is fixed, quantity changes

being of the correct size to realize cost savings

1. specialization of labor
2. specialization of management
3. use of by-products

someone that creates or improves a product of process

learning by doing- reinforces rote skill (repetitive)