Quản trị kinh doanh - Chapter 1: Analyzing economic problems

CHAPTER 11Analyzing Economic ProblemsCopyright (c)2014 John Wiley & Sons, Inc.2Chapter OneChapter One OverviewDefining MicroeconomicsWho Should Study Microeconomics?Microeconomic Modeling Elements of Models Solving the ModelsThe Types of Microeconomic AnalysisCopyright (c)2014 John Wiley & Sons, Inc.3Microeconomics DefinedMicroeconomics is the study of how individual economic decision-makers such as consumers, workers, firms or managers allocate scarce resources among alternate uses. This study involves both the behavior of these economic agents on their own and the way their behavior interacts to form larger units, such as markets.Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.4 Policy Makers Managers Union Leaders Lenders Business OwnersWho Should Study Microeconomics?Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.5Key Societal QuestionsSocieties must answer these questions that relate to microeconomics:What goods and services will be produced and in what quantitiesWho will produces these services and how will they produce themWho will receive these goods and services and how will they get themChapter OneCopyright (c)2014 John Wiley & Sons, Inc.6Microeconomic ModelingChoice vs. Alternatives Resemble Reality Be Understandable Be an Appropriate ScaleModels are like maps – using visual methods, they simply the process and facilitate understanding of complex concepts. Microeconomic models need to:Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.7Exogenous & Endogenous VariablesVariables that have values taken as given in the analysis are exogenous variables. Variables that have values determined as a result of the model’s workings are endogenous variables.Defined: “How would a manager hire the most possible workers on a budget of $100?” vs. “How would a manager minimize the cost of hiring three workers?” OR“How much food and clothing should the consumer purchase in order to maximize satisfaction on a budget of I?” vs.“What is the minimum level of expenditure that the consumer must receive in order to reach a subsistence level of satisfaction?”Examples:Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.8The Objective FunctionDependent on How the Objective Function is SpecifiedThe Objective Function specifies what the agent cares about.Defined: Does manager care more about raising profits or increasing “power”?Example:Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.9The ConstraintsConstraints are whatever limits is placed on the resources available to the agent.Defined:Examples: Time Budget Other Resources Technical Capabilities The Marketplace Rules, Regulations, and LawsChapter OneCopyright (c)2014 John Wiley & Sons, Inc.10The Constraint OptimizationBehavior can be modeled as optimizing the objective function, subject to various constraints.Example: Facilities ( F ): N = budget / $30 R&D ( R ): N = budget / $100 Max N (F,R) Subject to: expenditure S1 > S0Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.16Defined:Marginal ImpactThe Marginal Impact of a change in the exogenous variable is the incremental impact of the last unit of the exogenous variable on the endogenous variable.Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.17EquilibriumExample – Sale of Coffee BeansChapter OneCopyright (c)2014 John Wiley & Sons, Inc.18Demand (P,I)•EquilibriumExample – Sale of Coffee BeansChapter OneCopyright (c)2014 John Wiley & Sons, Inc.19Q*P*Demand (P,I)•EquilibriumExample – Sale of Coffee BeansChapter OneCopyright (c)2014 John Wiley & Sons, Inc.20EquilibriumDefined:Equilibrium is defined as the point where demand just equals supply in this market (i.e., the point where the demand and supply curves cross).Equilibrium analysis is an analysis of a system in a state that will continue indefinitely as long as the exogenous factors remain unchanged.Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.21Comparative Statics AnalysisA Comparative Statics Analysis compares the equilibrium state of a system before a change in the exogenous variables to the equilibrium state after the change.Defined:Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.22Comparative Statics AnalysisChapter OneSale of Pistachio NutsCopyright (c)2014 John Wiley & Sons, Inc.23Microeconomic AnalysisSome TypesPositive Analysis: Is an analysis that attempts to explain how an economic system works or to predict how it will change over timeNormative Analysis: Is an analysis of what should be doneChapter OneCopyright (c)2014 John Wiley & Sons, Inc.24Microeconomic AnalysisSome ExamplesExample: “Should we increase income equality rather than focus on economic efficiency?”Example: “Should we impose a progressive income tax or a sales tax to increase income equality?”Example: “Will a progressive income tax reduce aggregate hours worked?”Chapter OneCopyright (c)2014 John Wiley & Sons, Inc.