Notes, summaries, assignments, exams, and exercises for Economics for Baccalaureate

Company Costs and Structure

Fixed and Variable Costs

Fixed costs are those that always exist and never change. Variable costs are those that vary with the level of production (i.e., they change as production changes). The total cost is the sum of fixed and variable costs.

• TC = FC + VC (Total Cost = Fixed Cost + Variable Cost)
• ATC = TC / Q (Average Total Cost = Total Cost / Quantity)
• AVC = VC / Q (Average Variable Cost = Variable Cost / Quantity)
• MC = ΔTC / ΔQ (Marginal Cost = Change in Total Cost / Change in Quantity)

Direct and Indirect Costs

Direct costs are those directly associated with production that can be easily assigned to each product and measured by the number of units produced. Indirect costs affect the production process and the surrounding...

1918, order First World War. Crazy 20 years: phase dexpansio (1919.1929), phase of crisis (1921.1924), phase of valley, valley phase (1929-1939), the properiti (1924-1029) black ans 30: valley phase (1929-1939) / Dawes Plan (1024) New York stock market crash (24-10-1929) outbreak of World War II (1-9-1939). 1depresio expansion crisis indicators as: : fall in production, lowering prices, increasing Datura, internacionalsde slowdown in trade and capital goods, sectoral shocks: only affects a sector producio, textiles, chemicals ... economic crisis affects the whole of a pacer leconomia expansion phase of a valley. overproduction crisis: when there is very Exes doferta but not eaten enough, this makes lower prices. 2-return to normalcy, leconomia

Core Market Concepts

• Source Market: A time or environment where groups produce a surplus and connect with others to trade.
• Market: A medium where buyers and sellers connect to acquire or sell specific assets.
• Barter: The direct exchange of goods and services without money. This complexity eventually led to the creation of currency.
• Money: A generally accepted medium of exchange and legal tender. It facilitates trade, helps value goods, and allows for comparison.
• Price: The value of a good or service expressed in monetary units.

Pillars and Requirements of a Market

• Pillars: Suppliers, demanders (plaintiffs), and prices.
• Requirements: Free markets, private ownership of goods and production factors, and a legal framework regulating sales and economic

Internal and External Business Growth Strategies

Growth is a natural goal for all companies, regardless of their initial size. The reasons for seeking expansion are varied, such as the attainment of economies of scale, since increasing production can lower costs per unit, allow for a better division of labor, and optimize machine capacity. Furthermore, larger businesses often secure better prices from suppliers, increase their sales volume, and improve their chances of obtaining funding.

There are two primary paths to expansion:

• Internal growth: Making new investments within the company to increase its production capacity.
• External growth: Involving the acquisition, participation, or control of existing businesses. This latter type usually occurs

The Legal Structure
Underserved in its legal structure, companies are classified into two blocks: Individual Companies are those that belong to a natural person who directs them, as in traditional businesses, and are liable for debts even with their personal property. Business Partners or Companies: These have one or multiple owners contributing the necessary production factors for their use. The liability of limited partners is restricted to their minimum contributions, ensuring their solvency. The most common types of companies are Anoima Society. The minimum contribution is 60,101.21. Contributions from partners are not always monetary and are divided into fractional shares that represent ownership of the company or grant management rights...

Factors for Choosing a Business Location

For an employer to carry out their activities, they need to choose the physical space in which to install the necessary factors for production. Key considerations for location include:

• Market demand: Examines whether there is interest in the product to be offered within the population or the area where the company wants to install.
• Supply of raw materials: Assesses the quality of incoming materials, cost, and ease of obtaining them.
• The labor market: Considers possible workers, their expertise, labor costs, and legal situation.
• Communications and transport: Takes into account if the location has readily accessible transport and communication links.
• Supplies: Availability of essential supplies, such as water,

Introduction to Business Concentration

Business concentration is the process in which companies are grouped through capital ties or high rates of investment to form larger business units. While large enterprises enjoy greater bargaining power and other advantages, they may also face difficulty in coordination. This shows that the convenience of grouping businesses depends on each specific case, aiming to combine the advantages of large companies with the flexibility of small and medium-sized enterprises (SMEs).

Factors Favoring Business Concentration

• Risk Mitigation: The elimination of risk by reducing competition and preventing the possibility of being displaced in the market.
• Rationalization of Production and Distribution: Concentration allows

DEBT, PUBLIC budget deficits
Problems of measurement in the public deficit
The government budget deficit equals government spending minus revenue, which is equal to the amount of new debt that the state needs to issue to finance its operations. Four problems:
1. Inflation
less controversial is the measurement (the measurement of inflation). The measured deficit should equal the variation of real debt of the State, not the variation of nominal debt. However, the budget deficit, as usually measured, not corrected to account for inflation tenes. Q Suppose the budget is balanced (real public debt is fixed), in this case the nominal debt should increase the rate of inflation: ?D / D = ð where pi is the inflation rate, and D the stock of public...

Indefinite Contracts (Contratos Indefinidos)

Indefinite contracts are those that do not set a date for their finalization. Specific conditions mentioned include: 45 days per year, 42 monthly payments.

Indefinite Contracts in Building and Construction

These contracts serve the collective purpose of specific placement affected by unemployment and instability of work. They target the following groups:

• Unemployed workers aged 16 to 30 years of age (inclusive).
• Unemployed women hired for professions or occupations with lower rates of female employment.
• Workers over 45 years of age.
• Workers who have been unemployed for at least 5 months.
• Unemployed registered disabled workers.
• Workers previously employed in the same enterprise through a fixed-term or temporary

Introduction to Economics and Necessity

Economy: The science that examines how society uses scarce resources to produce and distribute them efficiently. Necessity: The lack of something, coupled with the desire to satisfy it through satisfying goods and services.

Classification of Economic Goods

Economic Goods: An economic good is defined as being scarce as well as useful. It is obtained from land, labor, and capital. Classifications include: consumer goods, production goods, single-use, sustainable use, complementary, substitute, import, export, sectors 1, 2, and 3, public property, and private property.

Opportunity Cost and Economic Systems

Opportunity Cost: The value of goods and services that one must renounce to acquire others. It is the value...