Theory of the firm - Admission/Application Essay Example

Add to wishlist

Summary

An indifference map shows a series of curves which depict alternative combination of any two randomly compared characteristics which can be useful for the consumer. Indifference curves further out to the right represent higher levels of utility. They are bound to the origin…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER93.1% of users find it useful

Read Text Preview

Subject: Miscellaneous
Type: Admission/Application Essay
Level: Undergraduate
Pages: 5 (1250 words)
Downloads: 2
Author: giuseppe12

Extract of sample "Theory of the firm"

Download file to see previous pages

The criticism of this concept is the difficulty to identify and measure characteristics in an unambiguous way. Personal tastes are visually impossible to quantify. Furthermore, to draw indifference map for a selection of consumers is difficult, and the majority may find it hard to imagine a series of combinations of characteristics between which they were indifferent. Therefore, this can provide only a rough guide to consumer choice. Consumer tastes change rapidly, and how these changes will influence the shape of the indifference curve is difficult to predict.

Through market research this concept could furnish information about consumer attitudes towards their product characteristics thereby affecting the graph. It is also useful for demand forecasting and marketing. Often, markets divide themselves into different market segments with consumers in each segment having similar

...Download file to see next pages Read More

CHECK THESE SAMPLES OF Theory of the firm

Is Global Banking Industry Ready to Face the Heat of Another Recession

Objectives of the research are to a):- Study the Global banking industry: Apart from an overview of both public and private banks, this would also include a thorough study of how Central Banks of both developing and developed nations have played a vital role in bringing reforms,… c): - Carry out a comparative analysis of Global banks vis-à-vis foreign players: The performance of the Global banks is compared with that of the foreign banks and a study is done to analyze the trend A special focus is given on the measures taken by the central bank to combat pressures of recession....

2 Pages (500 words) Research Paper

Coases Theory of the Firm

This paper will seek to discuss Coase's theory of the firm, investigating the extent to which transaction costs explain the existence of firms, as well as whether this theory explains the reasons for different performance for different firms.... The theory of the firm seeks to address two major themes; the reason why firms exist and the determinants of a firm's scope and scale.... In his seminal paper, “The Nature of the firm”, Ronald Coase argued that there was more to the firm than the incorporation of inputs in order to generate outputs....

12 Pages (3000 words) Essay

Profit Maximization Theories Applicable to Firms

In understanding profit maximization, the theory of the firm comes to play. Firms must act to maximize their profits, and this is the basic tenet of the theory.... Micro economics is the analysis based on micro units represented by the firm, consumers amongst others, and profit maximization as a function of the firm, can occur both in the short and long run and in the process, the firm determines price and output levels that provides the… There are several profit maximization theories that are applicable to firms....

5 Pages (1250 words) Term Paper

Holding up general motors Issues in the fisher body case study

The paper will conduct a literature search and review that is related to a case study in transaction cost economics.... Focus will be upon General Motors and the Fisher Body Company, during the 1920s, in regard to the pertinent economics of organizations.... hellip; He subsequently held a number of insightful interviews with various automobile industry executives, critically regarding the issue at hand....

7 Pages (1750 words) Literature review

Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure

This paper contains the summaries of two articles titled 'theory of the firm: Managerial Behavior, Agency Costs, and Ownership Structure' authored by Jensen, MC &Meckling and 'The Lysenko Syndrome in the Western Social Science' authored by A.... The concept of 'agency costs' pertains as to how the owner of firm structures and manages the respective incentives and compensations so as to encourage the managers to resort to such decisions, which add to the owner's interests, in a monitoring scenario vulnerable to uncertainty and imperfection....

4 Pages (1000 words) Annotated Bibliography

Developing Marketing Communication

Using marketing concepts and theories such as the theory of the firm, marketing mix, and retention marketing mix, this paper seeks to analyze SE's use of GUC as a product promotion campaign.... For instance, using the theory of the firm, it is considered best practice for companies to mitigate their spending and increase returns such that product promotion is both beneficial to the company and directly influencing sales positively (Luo, & Donthu, 2006)....

8 Pages (2000 words) Coursework

Economic Organization and Transaction Costs

hellip; In the field of economics, transaction costs also known as frictional costs, regard the overall expenditure/ expenses incurred by firm-entities or enterprises during an economic exchange of goods and services.... An essay "Economic Organization and Transaction Costs" will conduct a literature search and review that is related to a case study in transaction cost economics....

9 Pages (2250 words) Essay

Southampton Solent University

Ultimately the theory of the firm concept has evolved and taken a particular form which primarily dwells upon some concepts like:In this context it is being pointed out that a firm is nothing but a coordinating institution or organisation.... heory of the firm has witnessed various research and ensuing additions from them over a long period of time.... the firm coordinates in order to put in place aligned goal and objective for the different parties who are responsible for achieving that goal or objective; so that it can communicate and synergise the commonality of purpose and rationales....

6 Pages (1500 words) Term Paper