tailieunhanh - Microeconomics for MBAs 5

Microeconomics for MBAs 5. The Economic Way of Thinking for Managers. Microeconomics for MBAs develops the economic way of thinking through problems that MBA students will find relevant to their career goals. Maths is kept simple and the theory is illustrated with real-life scenarios | Chapter 1. The Economic Way of Thinking 40 Leave Men Free The lesson I have to teach is this Leave all creative energies uninhibited. Merely organize society to act in harmony with this lesson. Let society s legal apparatus remove all obstacles the best it can. Permit creative know-how to freely flow. Have faith that free men will respond to the Invisible Hand. This faith will be confirmed. I Pencil seemingly simple though I am offer the miracle of my creation as testimony that this is a practical faith as practical as the sun the rain a cedar tree and the good earth. CHAPTER 2 Competitive Product Markets And Firm Decisions Competition if not prevented tends to bring about a state of affairs in which first everything will be produced which somebody knows how to produce and which he can sell profitably at a price at which buyers will prefer it to the available alternatives second everything that is produced is produced by persons who can do so at least as cheaply as anybody else who in fact is not producing it and third that everything will be sold at prices lower than or at least as low as those at which it could be sold by anybody who in fact does not do so. Friedrich Hayek In the heart of New York City Fred Lieberman s small grocery is dwarfed by the tall buildings that surround it. Yet it is remarkable for what it accomplishes. Lieberman s carries thousands of items most of which are not produced locally and some of which come thousands of miles from other parts of this country or abroad. A man of modest means with little knowledge of production processes Fred Lieberman has nevertheless been able to stock his store with many if not most of the foods and toiletries his customers need and want. Occasionally Lieberman s runs out of certain items but most of the time the stock is ample. Its supply is so dependable that customers tend to take it for granted forgetting that Lieberman s is one small strand in an extremely complex economic network. How does Fred .

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• Competitive Product Markets
• Principles of Rational Behavior
• Society and Business
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