Monopoly Firms: Characteristics, Profit Maximization, and Price Discrimination
April 18: The Monopoly Firm: The Polar Opposite of the Perfectly Competitive Firm
Unlike a perfectly competitive (PC) industry with its many producers, a monopoly industry has only one producer.
Why? Barriers to entry into the industry: natural (high fixed costs), legal (government granted/permitted), or resource constraints.
Let’s look at the graph of the monopoly firm maximizing profits….
April 16
Unlike the PC firm, if a monopoly firm wishes to sell more output (i.e., increase Q), it must lowerBrand Associations and Their Impact on Business Value
1.6. Brand or Firm Associations. BV is a difficult key fact to measure in an economic way. This indicator reflects directly a ‘differentiation’ strategy built in the long term by Pull and Push actions, between direct competitors. So this is an intangible factor that affects directly on company or business consideration by the consumers. Two direct competitor companies can operate in the same business but be considered so differently by the consumer that it requires different positioning strategies
Read MoreEngineering Economics Fundamentals: Principles, Methods & Applications
Engineering Economics Fundamentals
Introduction
Engineering Economics is the science that deals with techniques of quantitative analysis useful for selecting a preferable alternative from several technically viable ones.
Four Fundamental Principles
The four fundamental principles that must be applied in all engineering economic decisions are:
- The time value of money
- Differential (incremental) cost and revenue
- Marginal cost and revenue
- The trade-off between risk and reward
Key Concepts
Ethics
Ethics: A set
Read MoreComprehensive Guide to Industrial Project Development and Technical Regulations in Spain
FIRE PROTECTION
Passive Protection
Aiming, by the design and behavior of construction elements before fire, ventilation of the building, and its geometry, to prevent the spread of fire and ensure people’s lives.
Behavior of Building Elements Under Fire:
- Fire Stability (EF)
- Flame Arrester (PF)
- Resistance to Fire (RF)
Active Protection
It consists of using appropriate means for confining, controlling, and extinguishing the fire once it has occurred.
Classification of Fires:
- Class A: Solid materials
- Class B:
Basic Accounting Principles, Concepts, and Processes
Basic Accounting
Accounting is the technical authority of a business that records economic events involving the company with the goal of delivering financial information upon request.
1.1 Accounting Principles
Accounting, as a science that interprets the economic facts of a business and organizes them in the form of accounts for control and presentation, rests on the following principles:
- Equity: Equity between conflicting interests should be a concern.
- Commercial Entity: Financial statements relate
International Finance: Exchange Rates, Parity, and Derivatives
Chapter 6: Fundamental Questions in International Finance
Determinants of Exchange Rates and Predictability
This chapter explores the economic theories connecting exchange rates, price levels, and interest rates, known as international parity conditions.
Law of One Price
The Law of One Price states that, assuming no transaction costs or restrictions, a product’s price should be the same in all markets.
For prices in different currencies:
- P$: Price of the product in US dollars
- S: Spot exchange rate (yen