IMS Content 1.2 <langstring xml:lang="en-US">WinEcon - Business Economics</langstring> A fully interactive business economics course. Interactive business economics course WinEcon - Business Economics Business and Economics Business and Economics Introduction Mobile Telecommunications - Markets and Government Introduction to Economics The Economic Approach - Rationality Objectives and Actions: The Squash Club Objectives and Actions: Allocating a Health Budget Objectives and Actions: Looking Ahead Economic Modelling The Firm Introduction to The Firm Introduction The Firm as a form of Business Organisation Introduction The Activities of Firms Lonely Planet: An Example of a Modern Firm The Firm Adding Value The Value Chain Stages in the Value Chain Market or Firm Co-ordination? The Market, Firms or Both? Better Co-ordination by Firms Business Contracts Introduction Transaction Costs Markets, Contracts and the Firm The Principal-Agent Relationship Dealing with Principal-Agent Problems Principals, Agents and Incentives - some examples Business Formats Introduction Forms of Business Organisation Businesses and Legal Liability Legal Forms of Business Organisation Franchising Franchise Partners The Market Introduction to The Market Introduction Demand and Factors that Affect It Introduction Demand for Housing in St. Andrews - Sudden Increase Factors Affecting Demand The Demand Curve of an Individual Shifts in an Individual's Demand Curve The Product Demand Curve Shifts in the Product Demand Curve The Demand for Water Supply and Factors that Affect It Introduction Factors Affecting Supply The Supply Curve of a Firm Shifts in the Supply Curve of a Firm The Product Supply Curve Shifts in the Product Supply Curve Analysing Markets using Supply and Demand Introduction Market Equilibrium Comparative Statics Agricultural Support Government Intervention The Cobweb Model: A Divergent Cobweb The Cobweb Model: A Convergent Cobweb Asymmetric Information - The Market for Lemons Supply and Demand with Quality Variation Financing the Firm Financing the Firm Introduction Why Do Firms Need Finance? Finance for Industry Types of Security Short-Term Financing Sources of Short-Term Finance The Stock Exchange The History of the Stock Exchange The Body Shop Consumer Choice Introduction to Consumer Choice Introduction Consumer Preferences Introduction Saatchi and Saatchi - Product Choices Consumption Decisions Elements of the Consumer Choice Model Discovering Indifference Curves Assumptions of Indifference Curves The Budget Line Introduction The Budget Line Drawing the Budget Line Changing the Budget Line Summary Consumer Choice Analysis Introduction Optimal Consumption Choice Income - Consumption Curve The Engel Curve Price - Consumption Curve Deriving the Demand Curve Separating the Substitution & Income Effects Introduction The Effect of a Price Change The Substitution Effect The Income Effect The Income & Substitution Effects Spend and Save Coupons A Two Part Tariff Inter-temporal Choice - Budget Constraint Inter-temporal Choice - Indifference Curve Analysis Carol's Hairdressing Business Market Demand and Elasticity Introduction to Market Demand and Elasticity Introduction Responsiveness of Demand to Price Changes Introduction Market Demand for Water The Concept of Elasticity Elasticity and Smoking Measuring Demand Elasticity Introduction Price Elasticity of Demand Price Elasticity and Total Revenue Point Elasticity - Linear Demand Curve Demand Curves with Constant Elasticity Factors Affecting PED Elasticities in Estimating the Demand for Water Cross Elasticity of Demand Measuring Supply Elasticity Introduction Ruby Earrings and PES Price Elasticity and the Slope of the Supply Curve Factors Affecting PES Firms and Their Costs Introduction to Firms and Their Costs Introduction Production in the Short-Run Introduction IKEA - Better Products at Lower Cost Production and Factor Inputs Production in the Short-Run The Law of Variable Proportions Modern Production Methods Short-Run Production Functions: a numerical example Marginal and Average Physical Product of Labour: a numerical example Mathematics of the Marginal Product Costs in the Short-Run Introduction Short-Run Costs and Labour Productivity Short-Run Cost Definition Drawing Short-Run Cost Curves Positioning Short-Run Cost Curves Deriving the Short-Run Average Fixed (AFC) and Average Variable Cost (AVC) Curves The Shape of the Average Total Cost (AC) Curve The Shape of the Marginal Cost (MC) Curve Deriving the Short-Run MC and AC Curves: a numerical example Mathematics of Marginal Cost Deriving Short-Run Total Cost Curves Summary of Short-Run Costs Production in the Long-Run Introduction Nike Changes its Production Processes The Long-Run Production Function Output against Labour Curve as Capital is Increased The Isocost Line Factors Affecting the Isocost Line The Slope of the Isocost Line Isoquants and Production Rays Technical Efficiency The Shape of the Isoquant: factor substitutability The Slope of the Isoquant: factor substitutability The Shape of the Isoquant: marginal rate of substitution Producing at Minimum Cost Cost Minimisation for a Fixed Output Level Maximum Output for a Fixed Budget Changes in Factor Prices: factor prices Changes in Factor Prices: an example A Crude Oil Pipeline Minimum Costs of Different Throughputs: crude oil pipeline Long-Run and Short-Run Costs Introduction Long-Run Expansion Path Short-Run Expansion Path Expansion Paths: short and long-run cost curves Comparing Long and Short-Run Costs Costs of Supplying Water Economies of Scale Introduction Crude Oil Pipeline - Economies of Scale Economies of Scale: definitions The Three Scale Effects Long-Run Average Costs in Practice Economies of Scale and Market Structure Business Objectives Introduction to Business Objectives Introduction Company Objectives, Stakeholders and the Environment Introduction Examples of Company Objectives The Nature of Business Objectives The Motivations of Owners, Managers and Workers The Business Environment Organisation and Objectives Profits and Other Objectives Introduction HSBC - Return on Capital Nestle - Sustainable Value A Managerial Approach to the Firm The Profit Objective Competition with Many Firms Introduction to Competition with Many Firms Introduction Markets and Competition Introduction Virgin Records - New Business, Cheaper Prices Characteristics of Different Market Structures Profit Maximisation Marginal Cost and Revenue at Profit Maximisation Normal and Supernormal Profit Perfect Competition Introduction Four Key Assumptions in Perfect Competition Firm and Industry Demand in Perfect Competition Demand Curve of a Firm in Perfect Competition Profit Maximisation in Perfect Competition Profit Maximising Output for a Firm in Perfect Competition Fixed and Variable Costs Short Run Supply Summary Perfect Competition and Demand Changes Introduction Profits and Losses in the Short-run The Comparative Static Effects of Demand Changes A Change in Demand with Diseconomies of Scale Monopolistic Competition Introduction Key Assumptions in Monopolistic Competition Short Run Equilibrium of a Monopolistic Firm Adjustment to Long-run Equilibrium Quiz on Monopolistic Competition Summary Monopoly Introduction to Monopoly Introduction Output, Price & Profit under Monopoly Introduction Banking Services Monopoly Two Key Assumptions in Monopoly Barriers to Entry A Monopolist's Revenue A Monopolist's Demand and Marginal Revenue Profit Maximisation by a Monopolist Profit Maximisation for a Monopolist using MC and MR More about Prices and Quantities under Monopoly Introduction Monopoly and Supply Demand, Elasticity and Monopoly Price Discrimination Under Monopoly Comparisons with Monopoly Theory Introduction Perfect Competition and Monopoly Compared Price, Output & Profit in Competition & Monopoly Main Differences between Perfect Competition and Monopoly The Supply of Water Impact of Water Meters and Weather Competition Between the Few Introduction to Competition Between the Few Introduction What is an Oligopoly? Introduction The Key Assumptions of Oligopoly Rivalry in Oligopoly Competition or Collusion Collusive Behaviour Introduction Collusive Oligopoly Cartels Cartel Disintegration A Cartel Example - OPEC Collusion in Practice Price Competitive Behaviour Introduction Assumptions of Cournot's Oligopoly Model Cournot's Model of Duopoly The Kinked Demand Curve Other Explanations for Stable Prices Game Theory Prisoners' Dilemma Game: an example A Duopoly Game Based on the Prisoners' Dilemma Nash Equilibria versus Co-operation Reasoning as a Duopolist Followers and Leaders Non-price Competition and Advertising Introduction Non - Price Competition Advertising The Economics of Advertising The Advertising Elasticity of Demand Saatchi and Saatchi: Product Differentiation Mergers Introduction Bank of Scotland and Halifax Merger The Merger Process Merger Activity Types of Merger Effects of Mergers and Acquisitions Factor Services An Introduction and Overview of Factor Services Introduction Nike Labour Force - Rights of Employees Factor Markets: an overview Factor Supply: the supply of labour Introduction Supply of Labour: the leisure/work trade-off Supply of Labour: derivation of the budget constraint The Labour Supply Decision The Market Supply of Labour Summary Factor Demand: the demand for labour Introduction Short-Run Demand for Labour: competitive input & output markets Short-Run Demand for Labour Aggregate Demand for Labour Factor Demand by a Firm: under different market structures The Firm's Demand for Factors: possible market combinations Competitive Input Market and Imperfect Output Market Derivation of the Marginal Factor Cost in Imperfect Input Markets Derivation of MRP and VMP in Imperfect Output Markets Imperfect Input and Output Markets Imperfect Input Market and Competitive Output Market Summary Economic Rent and Transfer Earnings Introduction The Market for Skilled Labour - TV weather presenters The Market for Unskilled Labour - bar staff The Market for City Centre Office Space Economic Rent and Transfer Earnings Summary of Economic Rent and Transfer Earnings Discrimination in the Labour Market Introduction The Aggregate Supply Curve faced by a Monopsonist Discriminating and Non-Discriminating Monopsony Compared Summary The Minimum Wage Introduction Minimum Wage The National Minimum Wage Summary Capital Investment Appraisal Introduction Net Present Value Evaluate Your Own Project The Meaning of Net Present Value The Cost of Capital: an introduction The Cost of Capital: influences Payback Summary The Firm in an International Setting Introduction to The Firm in an International Setting Introduction The Advantages of Trade Introduction Opportunity Cost and the Production Possibility Frontier The Gains from Trade The Principle of Comparative Advantage Sources of Comparative Advantage More Sources of Comparative Advantage International Transactions Introduction Doing Business Abroad: Exchange Rates Doing Business Abroad: Reducing Exchange Rate Risk The Balance of Payments Devaluation and the Balance of Payments Multinational Corporations Introduction Doing Business Abroad: The Multinational Corporation Multinational Companies: Procter and Gamble Examples of MNCs: BP, Nike and HB Fuller Government and the Firm Introduction to Government and the Firm Introduction Welfare Economics Reasons for Government Intervention Introduction Microeconomic Intervention: Instruments and Aims Pareto Improvements and Pareto Efficiency Efficiency in Consumption: Edgeworth Box Trading to Achieve Pareto Efficiency Pareto Efficiency in Perfect Markets: the Invisible Hand A Fundamental Theorem of Welfare Economics Monopoly Power & Allocative Inefficiency Monopoly and Market Failure Asymmetric Information Consumer & Producer Surplus Introduction Understanding Consumer Surplus Individual Consumer Surplus Market Consumer Surplus Consumer Surplus for Different Demand Curves Defining Producer Surplus Producer Surplus in Different Markets Social Surplus Summary Welfare Effects of Monopoly Introduction The Competitive Industry Social Surplus in Competition Social Surplus in Monopoly Changes Resulting from Monopolisation Deadweight Loss of Monopoly - An Alternative Measure Monopolisation of a Constant Cost Industry The Welfare Cost of Monopoly: Scale Economies & Choice Rent-seeking by Monopolists Summary Examples of Government Intervention Introduction Market Failure: Non-Rivalness and Non-Excludability Externalities & Allocative Inefficiency Externalities and Public Goods Advantages/Disadvantages of Taxes & Subsidies Examples of Regulation Regulation of Privatised Utilities Monopoly & Merger Policy Introduction UK regulation of Private Monopolies & Oligopolies UK Merger Policy Regulation due to Membership of the European Union Summary Key Macroeconomic Concepts and Data Introduction to Key Macroeconomic Concepts and Data Introduction Key Macroeconomic Indicators Introduction Trended and Non-Trended Variables The Behaviour of Real and Nominal Variables Fitting Linear Trends Measuring the Price Level and Inflation Real and Nominal GDP Indices for Measuring the Economy Calculating the GDP Deflator Developing an Accounting Framework Introduction Developing an Accounting Framework The Household Sector The Productive Sector The Circular Flow of Income Investment and Saving Why Saving Equals Investment The Inclusion of Government Injections Equal Withdrawals The Foreign Sector The Injections Equal Withdrawals (Again) Summary Defining Output Introduction Potential Pitfalls in Measuring Productive Activity Transfer Payments Double Counting - a Potential Error Double Counting - Avoiding the Problem Summary Measuring GDP Introduction The Output Approach GVA in Current Prices Output by Sector The Expenditure Approach Composition of Expenditure The Income Approach GDP by Income Type GNI, NNI and Economic Welfare Introduction GNI and NNI GDP and Economic Welfare Summary Income Expenditure Model Introduction to the Income Expenditure Model Introduction Circular Flow of Income and Expenditure Introduction Basic Concepts: Firms and Households Basic Concepts: Aggregate Markets The Simple Circular Flow of Income and Expenditure The Full Circular Flow of Income and Expenditure Accounting Identities in the Circular Flow Planned Versus Actual Flows Summary The Household Sector Introduction The Consumption Function Consumption and Income in Selected Countries Marginal Propensities to Consume and Save Average Propensity to Consume The Consumption Function Diagram Consumption, Taxation and Saving Taxation Saving Summary The Firms Sector and the Goods Market Introduction Aggregate Demand in the Goods Market Constructing the Aggregate Demand Function The Firms Sector Aggregate Supply: Equation & Diagram Summary Equilibrium in the Goods Market Introduction Goods Market Equilibrium Keynesian Cross Diagram The Formal Model: Equations & Solutions Solution Method 1: Aggregate Demand equals Aggregate Output/Income Introduction to Solution Method Two Solution Method 2: Planned Withdrawals equals Planned Injections Equilibrium Values for Other Variables Formal Model: Diagrams Summary Exogenous Changes in Aggregate Demand Introduction A Change in Injections A Change in Injections: a numerical example The Multiplier The Size of the Multiplier Equilibrium Values and Exogenous Changes The Multiplier: Withdrawals/Injections Summary Policy Implications of the Model Introduction Unemployment and Macroeconomic Policy Equilibrium and Full Employment Policy Implications: A Few Cautions Summary