The Production Process and Costs Assignment LO1 Explain alternative ways of measuring the productivity of inputs and the role of the manager in the production process. LO2 Calculate input demand and the costminimizing combination of inputs and use isoquant analysis to illustrate optimal input substitution. LO3 Calculate a cost function from a production function and explain how economic costs differ from accounting costs. LO4 Explain […]

Discus variable factors of production LO1 Explain alternative ways of measuring the productivity of inputs and the role of the manager in the production process. Try these problems: 1, 13 LO2 Calculate input demand and the cost-minimizing combination of inputs and use isoquant analysis to illustrate optimal input substitution. Try these problems: 5, 10 LO3 Calculate a cost function from a production function and explain […]

The Organization of the Firm Discussion LO1 Discuss the economic trade-offs associated with obtaining inputs through spot exchange, contract, or vertical integration. LO2 Identify four types of specialized investments, and explain how each can lead to costly bargaining, underinvestment, and/or a “hold-up problem.” LO3 Explain the optimal manner of procuring different types of inputs. LO4 Describe the principal–agent problem as it relates to owners and […]

Order Specialized Investments Assignment LO1 Discuss the economic trade-offs associated with obtaining inputs through spot exchange, contract, or vertical integration. Try these problems: 2, 12 LO2 Identify four types of specialized investments, and explain how each can lead to costly bargaining, underinvestment, and/or a “hold-up problem.” Try these problems: 4, 24 LO3 Explain the optimal manner of procuring different types of inputs. Try these problems: […]

Order The Nature of Industry Assignment LO1 Calculate alternative measures of industry structure, conduct, and performance, and discuss their limitations. LO2 Describe examples of vertical, horizontal, and conglomerate mergers, and explain the economic basis for each type of merger. LO3 Explain the relevance of the HerfindahlHirschman index for antitrust policy under the horizontal merger guidelines. LO4 Describe the structure-conduct-performance paradigm, the feedback critique, and their […]

Discus Demand and Market Conditions LO1 Calculate alternative measures of industry structure, conduct, and performance, and discuss their limitations. Try these problems: 1, 12 LO2 Describe examples of vertical, horizontal, and conglomerate mergers, and explain the economic basis for each type of merger. Try these problems: 14, 21 LO3 Explain the relevance of the Herfindahl-Hirschman index for antitrust policy under the horizontal merger guidelines. Try […]

Discus Managing in Competitive Monopolistic LO1 Identify the conditions under which a firm operates as perfectly competitive, monopolistically competitive, or a monopoly. LO2 Identify sources of (and strategies for obtaining) monopoly power. LO3 Apply the marginal principle to determine the profit-maximizing price and output. LO4 Show the relationship between the elasticity of demand for a firm’s product and its marginal revenue. LO5 Explain how long-run […]

Order monopolistic competition Assignment LO1 Identify the conditions under which a firm operates as perfectly competitive, monopolistically competitive, or a monopoly. Try these problems: 6, 15 LO2 Identify sources of (and strategies for obtaining) monopoly power. Try these problems: 13, 23 LO3 Apply the marginal principle to determine the profit-maximizing price and output. Try these problems: 2, 21 LO4 Show the relationship between the elasticity […]

Order Basic Oligopoly Models Assignment LO1 Explain how beliefs and strategic interaction shape optimal decisions in oligopoly environments. LO2 Identify the conditions under which a firm operates in a Sweezy, Cournot, Stackelberg, or Bertrand oligopoly, and the ramifications of each type of oligopoly for optimal pricing decisions, output decisions, and firm profits. LO3 Apply reaction (or best-response) functions to identify optimal decisions and likely competitor […]

Order Stackelberg Oligopoly Assignment LO1 Explain how beliefs and strategic interaction shape optimal decisions in oligopoly environments. Try these problems: 1, 15 LO2 Identify the conditions under which a firm operates in a Sweezy, Cournot, Stackelberg, or Bertrand oligopoly, and the ramifications of each type of oligopoly for optimal pricing decisions, output decisions, and firm profits. Try these problems: 6, 19 LO3 Apply reaction (or […]