Book contents
Book I - The market economy, overview and application
Summary
The first five chapters of Microeconomics for MBAs, which constitute Book I, develop the broad outlines of The Economic Way of Thinking for Managers. We explore in these chapters what economists mean by “rational behavior” and show how rationality-based thinking can illuminate public and management policies. The chapters will focus on how markets can be analyzed through the forces of supply and demand, developed with graphical analysis. We show how supply and demand curves can be used to explain how and why competitive markets work efficiently and under what conditions competitive markets can fail to work efficiently. In chapters 4 and 5, supply and demand curves are used to explore the market consequences of an array of governmental and organizational policies. Throughout the first five chapters, we will consider how management policies can affect the forces of supply and demand and how market forces can affect management policies. Our goal in this first book is to provide a broad overview of the market economy. In Book II, chapters 6 through 8, and Book III, chapters 9 through 12, we will examine many of the theoretical details underpinning supply and demand. In those chapters, we will develop a theory of firms and how they can be pressed to minimize their production costs in markets with different levels of competitiveness and in markets dominated by firms with differing levels of monopoly power.
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- Microeconomics for MBAsThe Economic Way of Thinking for Managers, pp. 1 - 2Publisher: Cambridge University PressPrint publication year: 2010