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Tutorial
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2004
Principles of Microeconomics for Strategists
by
Felix Oberholzer-Gee, Pai-Ling Yin and Elizabeth Raabe
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Abstract
Reviews microeconomic principles from a business strategy perspective, using the digital music industry as context. Contains three modules: demand, supply, and equilibrium. The demand module discusses the willingness to pay, market demand, price elasticity, and marginal revenue. The supply module explains elements of concern to a Sony manager producing hard drives for MP3 players--fixed, variable, marginal, and average costs; and short-run and long-run elasticity of supply. The third module discusses equilibrium and market power, optimal pricing, and price discrimination. Includes several exercises to test learning.
Keywords: Business Strategy;
Supply and Industry;
Demand and Consumers;
Microeconomics;
Balance and Stability;
Price;
Cost;
Revenue;
Music Industry;