Notes, abstracts, papers, exams and problems of Economy

MANAGEMENT MODELS

Partial Models: specific elements of the Management process brought to the foreground

• Management by Exception – Management only in exceptional situations.
• Management by Delegation – Management by transfer of tasks.
• Management by Decision Rules – Default decision rules are given.
• Management by Results - Management by control of results.

* Total Models: Inclusion of all elements of the Management process

• Management by Objectives – Management by agreed targets.
• St.Gallener Leadership Model - overall integrating model.
• Harzburger Leadership Model - Management with autonomous employees.
• 7-S-Model - Mc.Kinsey Model - hard and soft factors.

* Management by objectives

-Description

o Management and employees agree jointly on targets.

o Employee... Continue reading "Management Models and Objectives: A Comprehensive Overview" »

Canadian Packaging Requirements

Weight: Imperial system, metric system

Label: Product identity quantity, English and French, manufacturer information

Ingredients: Religious and cultural issues, prohibited, clearly labeled

Legal Requirements: Materials, warning

Centralized Strategy

Means that all of its manufacturing and marketing is performed in one location

Decentralized Strategy

Which means it would set up a manufacturing plant in another nation, or hire a Salesforce there, or even license its brand to a local manufacturer

A Trade Show

A collection of manufacturers and distributors of similar products who rent space, set up display booths, and tell their products to registered buyers who are seeking products to sell in the retail businesses

Licensing

MONEY

First of all, having money can show your status in our society: having a good car, wealthy possessions, living in an upper-class neighborhood and so on...can be representative of real happiness. Nevertheless, in our society we can see how families can't make ends meet due to their mortgage and the cost of living in general because we are having endless mortgages, and the standard of living has risen a lot over the last years.

In relation to what I would do if I become a millionaire, I think I would buy a house or a powerful car but not a sports car because it is a little uncomfortable since only two people can fit in it and you are with the roof on your head. So weighing up the pros and cons, I think the best option would be to buy a house... Continue reading "The Impact of Money on Society and Gender Differences in Financial Management" »

A Given Tax Will Cause a Smaller Deadweight Loss If

Demand and Supply Are:

• Inelastic
• Bigger Elastic

Deadweight Loss in a Taxed Market Because:

• The tax causes the market to trade less than the optimal units
• All the surplus of the units not traded is lost

Diminishing MPL States That:

• Every additional worked contributes a small increase in production that previously hired worked

Empirical i Theorical Economi:

• TE, build models
• Econ test them

How is Marginal Utility Defined:

• The change in utility from consuming one additional unit of a given good

How Do We Graphically Represent the Utility Maximizing Consumption Basket:

• The point of tangency between an indifference curve and the total budget constraint

How Does the Marginal Rate of Substitution Change as You Move

Telemarketing

It is a marketing action in which the telephone is used as the communication channel. It is aimed at contacting clients for commercial purposes, sales, or improving corporate image. It is part of a sales strategy of a company

Applications

1. Commercial applications: the goal here is to make a sale. How?

• Locating potential customers

• Arranging interviews for the sales team

• Keeping track of previous contacts

• Teleshopping

• Generating new sales of a product or a related one to the same customer (cross-selling)

• Renewing subscriptions (magazines, etc)

• Communicating new offers

• Attracting new customers

• Reactivating “silent” customers

• Follow-up, keep track of commercial offers received through postal mail or e-mail

2. Marketing applications, to gather information

Application of Multistage Games: The Entry Game

This scenario explores the strategic interactions between a potential entrant (Firm A) and an existing firm (Firm B) in a market. Firm B can choose to engage in a price war (play hard) or share the market (play soft). Despite the threat, Firm B has no incentive to play hard as it would earn less profit. The Nash equilibrium predicts Firm A entering the market and Firm B playing soft.

Managerial Decision Making with Risk-Averse Consumers

Criteria for Assessing Risk and Information Asymmetry

Managers employ various tactics to address risk-averse consumers, such as lowering prices, offering free samples, and utilizing advertising, particularly comparison advertising. Joining chain stores can also be... Continue reading "Managerial Economics: Key Concepts and Applications" »

Chapter 1: Introduction to Economics

1. Scarcity

What do economists mean when they state that a good is scarce?

d. The amount of the good that people would like exceeds the supply freely available from nature.

2. Economic Choice and Competitive Behavior

Economic choice and competitive behavior are the result of:

d. scarcity.

3. Marginal Cost

Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is:

$1.

4. Opportunity Costs

The expression, "There's no such thing as a free lunch," implies that:

c. opportunity costs are incurred when resources are used to produce goods and services.

5. Economic Way

Net Cash Flow = Cash Inflows - Cash Outflows

Closing Cash Balance = Amount of cash that the business is expected to have at the end of each month

Opening Balance = Amount of money a business has at the beginning of the month

Fixed Costs = Costs that do not change with the level of output

Variable Costs = Costs that change with the level of output

Total Costs = Variable Costs + Fixed Costs

Total Revenue = Price x Quantity Sold

Profit = Total Revenue - Total Costs

Break Even Point = Total Costs = Total Revenue

Gross Profit = Sales Revenue - Cost of Sales

Net Profit = Total Costs - Total Revenue

Operating Profit = Gross Profit - Expenses

Total Assets = Liabilities + Assets

Capital = Finance provided by the owners

Non-Current Assets = Assets that last more