1.

Forces that make market economies work

2. Group of buyer and seller of a particular product or service
3. Determine the demand
4. Determine the supply
5. Determine the quantity of goods produce and price it is sold
6. Behavior of people that interact in a competitive market
7. Buyer and seller meet at specific time and location. Auctioneer helps in pricing and arranging
sales
8. Buyer and seller do not meet, no auctioneer and offer different products
9. Many seller with similar product
10. Buyer and seller take the price that market determines
11. Easier to analyze and everyone is participating
12. Many buyer and seller and each has negligible impact on the market price
13. Seller set the price because they are the only seller in the market
14. 2 characteristics of perfectly competitive market
15. Amount of good that buyer are willing and able to purchase
16. As price increase, the demand falls. As price decrease, the demand increase
17. Table that shows the relationship between price and demand
18. Line that shows the relationship between price and demand
19. Downward slope
20. Demand and supply curve move to right is __________ and to left is ___________
21. Sum of all individual demand for a particular good or service
22. Sum of quantity demanded of buyers at each price
23. Alters the quantity demanded
24. 5 variables that can shift the demand curve
25. Normal vs. inferior good
26. Substitute vs. complement
27. Amount of supply that seller are willing and able to sell
28. As price increase, the demand increase. As price decrease, the demand decrease
29. Table that shows the relationship between price and supply
30. Line that shows the relationship between price and supply
31. Upward slope
32. Sum of all supply of all sellers
33. Sum of quantity supplied by all seller at each price
34. 4 variables that can shift the supply curve
35. Point where supply and demand intersect
36. Price in this intersection + its other term
37. Quantity supplied and demand at this intersection
38. What is surplus + its other term
39. What is shortage
40. Price adjust to bring the quantity supply and demand into balance
41. 3 step in analyzing changes in equilibrium
42. How increase in demand affect the equilibrium
43. How decrease in supply affect the equilibrium
44. What is manager? (4 duties)
45. Anything used to achieved a goal or produce a product or service
46. Is important because in scarcity, making a choice requires giving up another
47. Is the science of making decision in the presence of scarce resources
48. What is managerial economics?
49. What is the key to making a sound decision?
50. What are the 6 basic principles of the element of effective management?
51. Artifact of scarcity that makes it difficult for managers to achieve its goal
52. Primary goal of firm
53. Accounting profit vs. Economic profit
54. What is opportunity cost
55. What is the role of profit
56. 5 forces and industry profitability
57. Heightens competition and reduces the margins of existing firm
58. Industry profit is lower when suppliers have the power to negotiate favorable terms for their
input
59. Industry profits tend to be lower when customers or buyers have the power to negotiate
favorable terms for the products or services produced in the industry.
60. The sustainability of industry profit depends on the nature and intensity of rivalry among firms
61. This also depends on the price and value of interrelated product and services
62. Affect how resources are used and how hard workers work
63. What are the 2 sides of every market transaction
64. 3 resources of rivalry:
65. Consumer attempt to negotiate low prices and producer negotiate high prices
66. Consumers compete because of scarce quantity of goods
67. Multiple seller compete in marketplace
68. What is managers objective and give the formula
69. The change in total benefits arising from a change in the managerial control variable
70. The change in the total costs arising from a change in the managerial control variable
71. Managerial net benefits formula
72. How can the manager maximize net benefits?
73. Explain marginal principle