02 Sep Week 11 Discussion( ECO-550)
If you’ve read and understood this book, you should know how to:
1.Use the rational-actor paradigm, identify problems, and then fix them.
2.Use benefit-cost analysis to evaluate decisions.
3.Use marginal analysis to make extent (how much) decisions.
4.Make profitable investment and shut-down decisions.
5.Set optimal prices and price discriminate.
6.Predict industry-level changes using demand and supply analysis.
7.Understand the long-run forces that erode profitability.
8.Develop long-run strategies to increase firm value.
9.Predict how your own actions will influence other people’s actions.
10.Bargain effectively.
11.Make decisions in uncertain environments.
12.Solve the problems caused by moral hazard and adverse selection.
13.Motivate employees to work in the firm’s best interests.
14.Motivate divisions to work in the best interests of the parent company.
15.Manage vertical relationships with upstream suppliers or downstream customers.
Take a few minutes and share which of these concepts and skills you feel are going to be of greatest influence on your future.
Which of these concepts would have been really helpful to know in the past? What would it have changed?
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