-No more than 200 words!!
-Please use approach like DISCUSSION and use simple way to understand, add examples, this example I prefer to be in Accounting Department because I worked in this section! (P&G Saudi Arabia).
-Don’t need references
-The book for study is : Jeffrey M. Perloff, and James A. Brander, (2013). Managerial Economics and Strategy. Prentice Hall.
Firm Organization and Market Structure:
In this unit we explore the concept of profit maximization and its implications for decisions that managers make regarding their firm’s activities. We also examine the important market structure called Perfect Competition.
You wish to sell your home and have hired a real estate agent. When you sell your home the agent will collect a fee equal to 6% of the sale price. What is the goal of the real estate agent? Is his/her goal the same as your goal? Explain how any difference in goals could affect the final price at which you sell your home. Consider in particular your willingness to lower your asking price versus your agent’s willingness to lower your asking price. Is the impact of lowering the asking price the same for you and your agent?