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

Intangible Assets

Patents
Patents represent the rights granted to a person or legal entity, at a national or international level, on an exclusive basis, for exploitation or sale for a specified number of years. (In our country, 15 years).

Trademarks

Trademarks
These are used to maintain the distinctive aspects of a company's products. They give their owners exclusive rights to the use, operation, or sale of the brand.

Start-up Costs, Organizational Development and Implementation

Start-up costs, organizational development and implementation
The term capital gain is applied to indicate the excess or difference between the amount paid in the purchase of a company and the independent value of its tangible and intangible assets.

Deferred Expenses

Deferred

Constitution

Assets Comprising the Balance Sheet

Assets

Cash

This account records the cash, including checks and credit card tickets, entering the enterprise. It reflects deposits made to the bank, income received, and payments made. Generally, a sub-account called Petty Cash is used to record small cash outlays.

Banks

This account is used to control the money mobilized, typically referred to as checking accounts. Various operations, not always involving physical money, are usually carried out with banks. In such cases, the account controlling the operation should be complemented with a specific designation. For example:

• Bank Drafts Account
• Foreign Exchange Account
• Bank Account Discounting Drafts

Receivables

These documents control specific, duly formed claims held...

Profit Maximization in Monopoly

The marginal cost (MC) is half the slope of the total revenue curve. The production level that maximizes benefits is Q* = 10, the point where marginal revenue (MR) equals marginal cost (MC). At this production level, the slope of the profit curve is zero, and the slopes of the total cost and total revenue curves are equal. The profit per unit is $15, calculated as the difference between average revenue and average cost. With 10 units, the total profit is $150.

Demand Shifts and Monopoly Supply

A monopoly does not have a traditional supply curve because there is no unique relationship between price and quantity produced. When the demand curve shifts from D1 to D2, the new marginal revenue curve (MR2) intersects the...

First-Degree Price Discrimination Explained

We call the customer's reservation price the maximum price they are willing to pay for a good or service. First-degree price discrimination is the practice of charging each individual customer their exact reservation price.

Analyzing Profit with Graph 1

As the company charges each consumer their reservation price, it is profitable to increase production up to Q*. If the company only charges a single price, P*, the company's variable profits are represented by the area between the marginal revenue curve and the marginal cost curve.

With perfect price discrimination, these profits increase to the entire area between the demand curve and the marginal cost curve.

Calculating Single-Price Profits

First, we need...

Factors Determining Market Power

There are three primary factors that determine the elasticity of demand for a company's products:

• 1) Market Demand Elasticity: This limits the potential for monopoly power.
• 2) Number of Market Competitors: If there are many companies, it is improbable that any single firm can influence the price.
• 3) Inter-firm Relationships: Even if there are few companies in the market, none will be able to raise prices significantly if there is intense rivalry between them.

1. Elasticity of Demand

If only one company exists, its demand curve is the market demand curve. The degree of monopoly power depends on the elasticity of market demand. However, it is more frequent that several companies compete against each other; in this case,...

Factors Influencing Demand Changes

Demand changes are driven by several variables: taste, price, the price of substitutes, household income, access to credit, and other factors.

Market Reactions to Price and Scarcity

• Raising the price: When there is excess demand (scarcity or escazes), and there is no stock, the price rises. Consequently, the quantity demanded falls and the quantity supplied rises until the excess demand disappears.
• Falling demand for money: For example, the stock accumulation effect. In this cause-effect scenario, three things occur: prices lower, the quantity demanded increases, and the quantity supplied falls until the accumulation of stock disappears.

Supply Dynamics and Market Surplus

Supply (Offer) changes based on production...

Leasing and Lease Agreements

Leasing: A lease is an agreement for sale or rent that extends for one year or more. The owner of an asset (lessor) gives the other party (tenants/lessee) the exclusive right to use the asset during the specified time, in exchange for a series of payments (similar to a secured loan).

Key Definitions

• Lease: A convention celebrated between a landlord and tenants that grants the right of use for a particular period of time.
• Landlord: The person who gives the asset to the person using it.
• Tenants: The person who pays the price for the use of the property.
• Rental fee: The agreed amount payable by the lessee for the right to use the asset.
• Market value: The price that the seller and buyer agree upon.
• Residual value: The estimated

Summary of Chapter 3

Competitive Advantage
A good logistics management can provide significant competitive advantages. You can achieve:
- Undifferentiated status in the eyes of customers and competitors, taking advantage of value.
- Operating at a lower cost, leading to greater benefits in productivity or cost.
Eventually, the company has the tools to succeed in its business.

Advantage in Productivity
In any industry, a company that produces at lower costs normally has the highest turnover since:
- It achieves the best economies of scale (fixed costs are spread over a large volume).
- It benefits from the impact of the experience curve, which improves the performance of workers.

Historically, it is known that reducing costs through achieving greater...

Elements of Annual Accounts (CCAA)

Understanding the core components of financial statements is essential for analyzing a company's financial health. Below are the primary elements of assets, liabilities, and equity:

1. Assets

Assets are goods, rights, and other economic resources controlled by the company, resulting from past events, from which the firm expects to obtain future economic benefits or earnings.

2. Liabilities

Liabilities are present obligations arising from past events. Upon settlement, the company expects to divest resources that could otherwise produce future economic benefits or returns.

3. Net Patrimony (Equity)

Net Patrimony represents the residual interest in the assets of the company after deducting all its liabilities. This...

Determinants of Individual Demand

• The price of the good (P_i): The relationship between the quantity demanded of an asset and its price is known as the "Law of Demand." Keeping everything else constant (ceteris paribus), the quantity demanded of a good falls when its price rises.
• The consumer's income (R_i):
  • Normal good: The quantity demanded increases as income increases.
  • Inferior good: The quantity demanded decreases as income increases.
• The prices of other related goods (P_k):
  • Substitute goods: An increase in the price of one leads to an increase in the demand for the other.
  • Complementary goods: An increase in the price of one produces a decrease in the quantity demanded of the other.
• Consumer tastes (G_j): These have a major impact on the demand for