Read and Download Ebook (PDF) Managerial Economics In A Global Economy PDF (PDF) Managerial Economics in a Global Economy PDF (PDF) Managerial. Request PDF on ResearchGate | On Jan 1, , D. Salvatore and others published Managerial Economics in a Global Economy. Managerial Economics in a Global Economy, 5th Edition by Dominick Salvatore. 39 Pages (zlibraryexau2g3p_onion).pdf Astrophysics for People in a Hurry.
|Language:||English, Spanish, Portuguese|
|Distribution:||Free* [*Sign up for free]|
Managerial Economics in a Global Economy, 5th Edition by. Dominick Salvatore. Chapter 1. The Nature and Scope of Managerial Economics. PowerPoint. Managerial Economics in a Global Economy, 5th Edition Chapter 1 - Free download as Powerpoint Presentation .ppt), PDF File .pdf), Text File .txt) or view. Trove: Find and get Australian resources. Books, images, historic newspapers, maps, archives and more.
And this term "the invisible hand" is famous. Led by an invisible hand to promote an end which was no part of his intention. He is saying, look, when individual actors just act in their own self-interest, that often in aggregate leads to things that each of those individual actors did not intend.
Then he says: nor is it always the worst for society that it was no part of it. So, it was not necessarily a bad thing. By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it. So, this is really a pretty strong statement. It's really at the core of capitalism. And that's why I point out that it was published in the same year as the American Declaration of Independence, because obviously America, the Founding Fathers, they wrote the Declaration of Independence, the Constitution, that really talks about what it means to be a democratic country, what are the rights of its citizens.
But the United States, with its overall experience of an American, is at least as influenced by the work of Adam Smith, by this kind of foundational ideas of capitalism. And they just both happened to happen around the same time. But this idea is not always that intuitive. Individual actors, by essentially pursuing their own self-interested ends might be doing more for society than than if any of them actually tried to promote the overall well-being of society.
And I don't think that Adam Smith would say that it's always good for someone to act self-interested, or that it's never good for people to actually think about the implications of what they are doing in an aggregate sense, but he is saying that frequently..
Could lead to more innovation. Could lead to better investment. Could lead to more productivity. Could lead to more wealth, more, a larger pie for everyone.
And now Economics is frequently.. Micro is that people, individual actors are acting out of their own self-interest. And the macro is that it might be good for the economy, or the nation as a whole.
And so, now, modern economists tend to divide themselves into these two schools, or into these two subjects: microeconomics, which is the study of individual actors. And you have macro-economics, which is the study of the economy in aggregate.
And you get it from the words. Micro -- the prefix refers to very small things. Macro refers to the larger, to the bigger picture.
And so, micro-economics is essentially how actors.. And you hear the words scarce resources a lot when people talk about economics. And a scarce resource is one you don't have an infinite amount of. For example, love might not be a scarce resource. You might have an infinite amount of love. But a resource that would be scarce is something like food, or water, or money, or time, or labor. These are all scarce resources. And so microeconomics is how do people decide where to put those scarce resource, how do they decide where to deploy them.
And how does that..
Macro-economics is the study of what happens at the aggregate to an economy. So, 'aggregate', what happens in aggregate to an economy, from the millions of individual actors.
Aggregate economy. We now have millions of actors. And often focuses on policy-related questions. SO, do you raise or lower taxes. Or, what's going to happen when you raise or lower taxes. Do you regulate or de-regulate?
How does that affect the overall productivity when you do this.
There are many transaction costs in addition to the purchase price. There is the time taken to research features and attributes, and comparative pricing. There may be negotiation or haggling with the vendor. There may be legal costs in a contracting process. There may be integration costs to fit the new resource into your production chain.
If the new resource is an employee you are hiring, there are advertising, interviewing and negotiation costs, as well as the benefits package that accompanies the salary agreement. All of these transaction costs, across the entirety of your business, add up to an amount that is pretty significant. They transform into monitoring and managements costs. Walmart owns many trucks and the drivers are employees.
There are extensive monitoring costs associated with the ownership of these resources and the employment of the drivers and mechanics and service technicians. This group of costs can be characterized as the cost of confidence that you are getting the performance that you want out of the resource you own.
Another kind of transaction cost arises when you decide you want to recombine, reshuffle or discard assets, or to use them in a new way. Circumstances change, and you want to make adjustments. Is the asset adjustable? Does the employee have exactly the skills you want for a new process or method? Will you be able reprogram the asset or redirect the employee to a new job function? In many cases, you might have need of the legal system for a revised contract legal costs are transaction costs , or there may be regulations preventing you from closing a plant or laying off workers.
Any time you are constrained from making the adjustments you want at the speed you prefer, you are facing transaction costs. Could you have anticipated the situation when you first contracted for the resource or first hired the worker?
Probably not — but trying to do so would be a transaction cost in itself! Or rent versus own.
Or in-house versus outsource.