BUSINESS LOGICS

> Father: I want you to marry a girl of my choice
>
> Son: 'I will choose my own bride!'
>
> Father: 'But the girl is Bill Gates's
> daughter.'
>
> Son: 'Well, in that case...ok'
>
>
>
> Next Father approaches Bill Gates.
>
>
>
> Father: 'I have a husband for your daughter.'
>
> Bill Gates: 'But my daughter is too young to
> marry!'
>
> Father: 'But this young man is a vice-president of the
> World Bank.'
>
> Bill Gates: 'Ah, in that case...ok'
>
>
>
> Finally Father goes to see the president of the World Bank.
>
>
>
>
> Father: 'I have a young man to be recommended as a
> vice-president.'
>
> President: 'But I already have more vice- presidents
> than I need!'
>
> Father: 'But this young man is Bill Gates's
> son-in-law.'
>
> President: 'Ah, in that case...ok'
>
>
>
> This is how business is done!!
>
> Moral: Even If you have nothing, You can get Anything. But
> your attitude
> should be positive
>
>
>
>
>
> What is Marketing?

• You see a gorgeous girl at a party. You go up to her and say: ' I am very rich. Marry me! ' - That's Direct Marketing'
• 
  You're at a party with a bunch of friends and see a gorgeous girl. One of your friends goes up to her and pointing at you  says: ' He's very rich. 'Marry him.' -That's Advertising'
• 
  You see a gorgeous girl at a party. You go up to her and get her telephone number. The next day, you call and say: ' Hi, I'm very rich. 'Marry me - That's Telemarketing'
• 
  You're at a party and see gorgeous girl. You get up and straighten your tie, you walk up to her and pour her a drink, you open the door (of the car)for her, pick up her bag after she drops it, offer her ride and then say:'By the way, I'm rich. Will you 'Marry Me?' - That's Public Relations'
• 
  You're at a party and see gorgeous girl. She walks up to you and says:'You are very rich! 'Can you marry ! Me?' - That's Brand Recognition'
• 
  You see a gorgeous girl at a party. You go up to her and say: 'I am very rich. Marry me!' She gives you a nice hard slap on your face. - ' That's Customer Feedback '

10/09/2008 Add on:

• You see a gorgeous girl at a party. You go up to her and say: 'I am very rich. Marry me!' And she introduces you to her husband. - 'That's demand and supply gap'

• You see a gorgeous girl at a party. You go up to her and before you say anything, another person come and tell her: 'I'm rich. Will you marry me?' and she goes with him - 'That's competition eating into your market share'

• You see a gorgeous girl at a party. You go up to her and before you say: 'I'm rich, Marry me!' your wife arrives. - ' That's restriction for entering new markets '
  
  

Summary Table of Market Structure

上个星期刚上完Market Structure，这里是4个不同的市场结构的summary（网上找不到的哦！）共参考。

 

	Perfect Competitive	Monopolistic	Oligopoly	Monopoly
No. Of Seller	Many	Many(not as many as Perfect Competitive)	Few	single
No. Of Buyer	Many	Many	Many	Many
Product	Homogeneous	Differentiated	Differentiated/ Homogeneous	No close substitute
Entry & Exit	Very easy	Relatively easy	Significant barriers	Extremely high barriers
Control Over Price	No (price taker)	Some/less (price searcher)	Some (price searcher)	Many (price searcher)
Demand Curve	Perfectly elastic	Elastic	Inelastic	More inelastic
Profit Maximize	MR=MC	MR=MC	MR=MC	MR=MC
Short Run Profit	-Economic loss -Zero economic profit -Positive economic profit	-Economic loss -Zero economic profit -Positive economic profit	-Economic loss -Zero economic profit -Positive economic profit	-Economic loss -Zero economic profit -Positive economic profit
Long Run Profit	Zero economic profit	Zero economic profit	-Zero economic profit -Positive economic profit	-Zero economic profit -Positive economic profit
Productive Efficiency	Yes	No (excess capacity)	No (excess capacity)	No (excess capacity)
Resource Allocative Efficiency	Yes (P=MC)	No (P>MC)	No (P>MC)	No (P>MC)
Decision	-P=min AVC->Continued -P> min AVC->Continued -P<min AVC->ShutDown	-P=min AVC->Continued -P> min AVC->Continued -P<min AVC->ShutDown	-P=min AVC->Continued -P> min AVC->Continued -P<min AVC->ShutDown	-P=min AVC->Continued -P> min AVC->Continued -P<min AVC->ShutDown
Example	Agriculture, stock market	Restaurant	Petrol(homogeneous) Hand phone(differentiated)	Public utilities

 

考试到咯...DMK学生加油^^

 

~~Tokidoki~~

Perfect Competition

最近Microeconomic 在学Perfect Competition. 大概是在说市场上面market的其中一类吧！Perfect Competition的性质是：Many firms，Homogeneous Products，Low-Entry Barriers，High information。简单来说Perfect Competition 的公司是没有“市场力量（market Power）”，比如说他们不能够去定自己生产的产品在市场上的价钱，同时他们也不能够决定市场的供应量，一切的卖价和数量都取自于“市场上的平衡点（Equilibrium Point）”，或者我们称它们为"Price Taker"。

今天不是想长篇大论讲完所学的，只是今天上课的时候好像发现这个这一课的Theory 有趣的地方!!!   

之前在Demand and Supply 的时候我们知道Change in Demand 和Change in Supply 会带出新的Equilibrium Price，那么这一课就是深入讨论为什么会Change in Supply（之前提到price of a relevant resource，Technology，number of sellers，Expectations of future price 和Taxes and subsidies 都会影响哦！）。之前所提到的这些因素大部分是来自外面的影响，这一课所讲的是来自公司本身的影响：Maximize Profit！一间公司要Maximize Profit 有两个方法，降低成本(cost)、或者提高售价，但是因为是Perfect Competition的关系，我们并不能够自己决定售价，所以一间Perfect Competition的公司只能够在降低成本来获得Maximum Profit。

今天上课得到了一个结论：loss in short run ---> some firm leave ---> Supply降低 ---> equilibrium price上升 ---> Firm sells at higher price ---> zero economic profit。简单来说就是当一些因素导致生意亏损的时候，那些损失严重的公司就会被淘汰掉，所以市场上的供应量就会降低，供应量降低也意味着需求量比供应量高了（因为之前是equilibrium的），需求量高供应量低equilibrium price就会上升。

OK 到这里应该没问题吧！那就讲讲我的看法吧！拿市场上面的快速面做我的例子，以前块多到两块多而已，以前也只是一两个牌子而以，现在三块多到五块都有，而且牌子最少也有10种。看回我们的结论Supply降低 equilibrium price上升。那么当快速面的价钱在上升的时候，为什么快速面的供应量（牌子越来越多=厂商增加了）没有降低的？

哈哈哈！好像很有道理哦！其实是因为我们对快速面的需求量增加大于供应量所造成的。那为什么我们的对快速面的需求量会增加呢？原因很简单，因为当我们的收入(income)低的时候，我们消费的产品也就比较便宜(inferior goods)。所以我可以利用以上的Theory做一个结论，我国的平均收入很低，所以全国人民依赖inferior goods 造成快速面需求量增加^.^