Principles of Microeconomics for Strategists
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;
Balance and Stability;