Managerial Economy – Different Industries
Write a 500-750 word APA formatted paper (word requirement does not include title page, Certificate of Authorship (CoA) or references) discussing how the economics of four different industries is changing, and how these changes will alter how firms within these industries relate to their customers. Be sure to include factors such as technology, competition, and input prices in your analysis. You should also apply concepts that you reviewed and studied in this learning plan in your analysis. Support your work with citations where appropriate and defend your answer.
Concepts studied in this learning plan are:
Transition costs – Opportunistic behavior – Reasons for the existence of firms and the meaning of transactions costs – Economic goals of a firm and optimal decision making – Concept of “principal-agent” problem – Profit Maximization hypothesis – Non economic objectives – Satisficing – Maximizing the wealth of stockholders (business risk and financial risks) – Historical cost versus replacement costs – Implicit costs and normal costs- Economic cost and Economic profit