Monthly Archives: January 2012

Micro 1/31

*absolute advantage is never the reason that you specialize*

(slavery in Sudan reading not required but suggested)
-do gooders raised the demand of slaves, which meant that there were more suppliers were willing to supply at a higher price

Chapter 4 in book

-start with demand because without demand, there is no supply
-when you are talking about demand, you are talking about the curve… Therefor an increase in demand would shift the curve out
-***quantity demanded happens on the demand curve***
Demand schedule for Apartments
Price Quantity Demanded
300 400
350 300
400 200
450 100

-Law of Demand: as price goes up, quantity demanded goes down all else constant
-based on Law of Diminishing Marginal Benefit: as you consumer more of “x”, the additional benefit per unit will decrease (what drives the Law of Demand)
Demand equation: P = a+b(Qd)
-b= (p1-p0)/(q1-q0)
-***the slope of a demand curve in this class will ALWAYS be negative***
slope= -1/2
P= a- 1/2(Qd) (from example)
Plug in a P & Q set
400= a- 1/2(200)
Supply and demand problem on site

The demand curve is your marginal benefit
The supply curve is your marginal cost

(to shave head)
P Quantity Supplied
100,000 42
10,000 35
1,000 25
500 23
100 21
50 15

Law of Supply: as price goes up, quantity supplied goes up all else constant
If supply goes up, the curve shifts to the right

Supply schedule of apartments
P Quantity Supplied
250 100
400 200
550 300
700 400

P = a+b(Qs)
b = (P1-P0)/(Q1-Q0)
b = 1.5

Pick a price and quantity supplied (doesn’t matter which pair)
P = a+ 1.5 Q (the supply curve will Always be positive)
700 = a + 1.5(400)
Equilibrium is where Quantity Demanded and Quantity Supplied are equal (MC=MB)

How to find equilibrium:
-set equations equal to each other
-get Quantity first, then plug quantity into either equation
Check by using more than one method

Disequilibrium: when you are not in equilibrium
1. shortage: Qd>Qs
2. surplus: Qd<Qs

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Principles 1/30

Supplier component: companies that provide resources (raw materials)
-buyer dependence: the degree to which a company has to rely on its supplier; the difficulty of selling products to other buyers
-supplier dependence: the importance of the supplier’s product to the company; the difficulty of finding other sources of that product
Labor Market:***involves people who are able and available to work***
-three trends:
1. growing need for computer-literate knowledge workers
2. necessity for ongoing investment in human resources
– recruitment, education, training
3. Effects on international trading blocks, automation, *outsourcing*, and shifting facilities to locations upon labor dislocations
External Environment & uncertainty
-uncertainty: managers do not have sufficient information about the external environment
– look to ppt to see low to high uncertainty
– two key factors:
1. rate of change in factors of environment (vertical)
2. # of factors in organization environment (horizontal)
Making sense of changing environments:
1. Environmental Scanning
2. Interpreting Environmental factors (knowing competitor weakness, etc.)
3. Acting on threats and opportunities
Organizational Culture: the set of key values, beliefs, understandings, and norms that members of an organization share
1. surface level: seen and observed (dress codes, behavior, memos)
2. expressed values and beliefs: heard but not seen (what ppl say, how decisions made)
3. unconsciously held assumptions & beliefs: unwritten and rarely discussed (widely shared assumptions and beliefs, **buried deep below surface**, rarely discussed or thought of)

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principles 1/25


Chapter 3

Organizational Environments
-external environments
-***all elements outside of the organization that have the potential to affect the organization***
-general environment
-outer layer of external environment; affects an organization indirectly; 5 components
-task environment
– affects directly; influences operations & performances (see chart)
-internal environment
– element’s within the organization’s boundaries
Components of the general environment
1. International: represents events originating in foreign countries as well as opportunities for U.S. companies in other countries
2. Technology: knowledge tools and techniques; ***can be great benefit or daunting threat****
-inputs: raw materials & information
-outputs: products & services
3. Socio-cultural: demographic characteristics; general behavior, attitudes, and beliefs of people
4. Economic: general economic health; recent trends (frequency of mergers and acquisitions & small business sector vitality
General economic health: consumer purchasing power, unemployment rate, interest rates
5. Political/Legal: legislation, regulations, court decisions; must be informed about laws, regulations, and potential lawsuits that could affect business

Task Environment (directly) 4 components
– customers
– competitor

-monitoring customer wants and needs is critical to business success
-reactive customer monitoring: responding to problem, trends, & events (after)
-proactive: anticipating problems, trends, and events (before)
***Competitor: companies that product goods and services to the same customer base***
competitive analysis:
-deciding who your competitors are
-anticipating competitors’ moves
-determining competitors’ strengths and weaknesses

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Micro Notes 1/26

Lower slope = lower opportunity cost for “x” (comparative advantage)
Steeper slope = lower opportunity cost for the “y” variable

-why is manufacturing moving to china?
– cheaper; maximize profit; due to lack of regulation (safety, environment, wages)
– why is labor cheap?
– opportunity cost to work in factory is very low (farming to stay alive… not good)
-no options
– what is the problem?
– ****all eggs in one basket (no diversity)**** (key problem if asked on test)
– power
– jobs lost (not true because we never had many factories here.. other countries)
-be able to make a graph about it
-be able to talk about the problems
-be able to talk about opportunity cost

Class Material

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World Literature 1/27 Popol Vuh

attempts of creation:

  1. animals (had no speech, could not praise gods)
  2. mud people (could not do anything of worth for the gods)
  3. wood (burned, flooded, and rest turned into monkeys… possible evolution?)

this shows that the gods were not perfect because they:

  • worry
  • disagree
  • fall short

Authors of this book are anonymous because the Spanish would have killed them for trying to preserve the culture

The gods made there successful attempt of humans on the fourth try

  • they used corn; corn was the staple for the diet and very significant to the culture
  • the people first knew everything and saw everything
    • they were too much like gods
  • the gods dampened their knowledge and sight to prevent them from being too powerful
  • the corn people gave the gods praise
  • once the gods realized they were good, the corn people received wives

The twin fathers: they die and come back (numerous times)

  • they test mortality
  • they are finally defeated
  • One Hunahpu’s head brings life to the tree
    • ***the Blood Woman is tempted by the tree, even though she was forbidden***
    • One Hunahpu’s head spits on her and she conceives the twins
  • One Hunahpu is not fully killed as long as he has a son to carry his name (very cultural)

The “trickster” twins

  • take down Seven Macaw
    • shoot out his beautiful jewel teeth
    • he was attractive through his teeth, and so he lost all vanity with beauty
  • colors were significant (such as the blue and green feathers)
  • old people retained wisdom ( faked having grandparents because the old get respect)
  • they bring down vanity

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China Article- Microeconomics

Brief Overview

There is worry that there is too much investment in China. The concern is that companies give too much power to China in manufacturing. Economists believe that companies should diversify their company’s manufacturing to other countries to avoid control.

Positive Statements

  • Its wage rates are a third of Mexico’s and Hungary’s, and 5% of those in the U.S. or Japan
  • U.S. companies are shifting manufacturing from Malaysia, Thailand, Indonesia, and even Mexico to China
  • Its revenues have grown from $100 million in 1993 to an estimated $14 billion today

Normative Statements

  • No one would say China dominates manufacturing–yet
  • It would be better if their manufacturing facilities were more geographically dispersed

If I missed any, let me know!

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World Lit 1/23


Today for a good portion of the class, we watched the Hamlet clip. These are the notes that followed…

“the First Murder” (pg56)

  • sacrifice was expected by God
  • some things are given willingly (Abel), and other things, not so much (Cain)
  • Abel gives the best sacrifice he has to offer
  • Cain gives as well… just not the best
  • Lord has respect for Abel’s gift, no respect for Cain’s gift
  • best v. obligatory
  • things done by choice are usually received better
  • God knows the heart of the givers
  • God asks, “where is Abel?”

-opportunity to confess (redemption)

-God doles out necessary punishment

-makes Cain leave (nomad) not to be killed

-living is sometimes more painful (connection w/ Rostam?)

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