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For the following, the short run is the period of time in which the firm’s plant size is fixed and the number of firms in the industry is fixed. STC(Q) = SFC + NSFC + TVC(q) for q > 0 STC(Q) = SFC for q = 0

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Standing plans (p. 211) Designed for repeated use in response to commonly occurring events Policy – describes how an organization and its members should respond to recurring or anticipated situations Procedures – provides the specific steps to be taken as part of a recurring process or in response to a recurring situation Rules and regulations ...

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Definition: The long run total cost curve shows minimized total cost as output varies, holding input prices constant. Graphically, what does the total cost curve look like if Q varies and w and r are fixed?

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Considered worker-owned when significant proportion of shares is held by employees Influence may assist labor-management relations or “cause firm to deviate from efficiency” Labor co-operatives were common in the lumber industry Compared to similar, non-co-op firms, their growth was slower – may be due to labor costs Lumber cooperatives found ...

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The Classical & Modern approaches are diametric opposites job enrichment is the opposite of specialization continuous, decentralized improvement is the opposite of Taylorism Both work very well in some circumstances your job: figure out how much of each approach works best in your case more precisely: what blend of the two approaches you shoul...

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Ambiguity (p. 174) Information about the situation, goals, or criteria that is incomplete or can be interpreted in multiple ways Symptomatic effects (p. 174) Observable behaviors related to underlying causal variables Problems – undesirable behaviors Are noticed due to their symptomatic effects

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Cost minimization problem: Finding the input combination that minimizes a firm’s total cost of producing a particular level of output. Cost minimization firm: A firm that seeks to minimize the cost of producing a given amount of output. Long run: A period of time when the quantities of all of the firm’s input can vary. Short run: A period of tim...

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Total Product Function: A single-input production function. It shows how total output depends on the level of the input Increasing Marginal Returns to Labor: An increase in the quantity of labor increases total output at an increasing rate. Diminishing Marginal Returns to Labor: An increase in the quantity of labor increases total output but at a...

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Governments (p. 149) Enact legal requirements to prevent unethical behavior E.g., Sarbannes-Oxley Act (2002) – requires greater transparency in company accounting practices Face “fundamental large-firm problem” stemming from: Separation of ownership and control Decentralized regulation system

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Organizations also use informal “network” structures either overlaid on formal structure, or made more explicit often serve a similar purpose to lateral coordination mechanisms but are more fluid / less permanent Network structures are essentially a form of internal market the “asset” is “capital” less transactional, more relationship-based ...

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