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Managerial Economics and Business Strategy
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The primary focus of this book is on the second word in managerial economics.
Economics is the science of making decisions in the presence of scarce resources.
Resources are simply anything used to produce a good or service or, more generally,
to achieve a goal. Decisions are important because scarcity implies that by
making one choice, you give up another. A computer firm that spends more
resources on advertising has fewer resources to invest in research and development.
A food bank that spends more on soup has less to spend on fruit. Economic decisions
thus involve the allocation of scarce resources, and a manager’s task is to allocate
resources so as to best meet the manager’s goals.
One of the best ways to comprehend the pervasive nature of scarcity is to imagine
that a genie has appeared and offered to grant you three wishes. If resources
were not scarce, you would tell the genie you have absolutely nothing to wish for;
you already have everything you want. Surely, as you begin this course, you recognize
that time is one of the scarcest resources of all. Your primary decision problem
is to allocate a scarce resource—time—to achieve a goal—such as mastering the
subject matter or earning an A in the course.
Michael R. Baye and Jeffrey T. Prince - Personal Name
1st Edition
978-0-07-352322-4
NONE
Managerial Economics and Business Strategy
Economics
English
McGraw-Hill Companies, Inc
2014
USA
1-677
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