Shahid Monametsi
This chapter discusses the competitiveness of the markets and how this affects separate competitors decisions when selling. This chapter also brings the ideas of supply and demand together with the fairly new concepts introduced in the previous chapter. This chapter really confused me. I know that it is hard especially since the last chapter was a little difficult for me to understand, however this was far less equation heavy. I didn't quite understand the graphs. It was not until I referred back to the elasticity laws/ logic that I was able to understand what was going on. Even then I was still left wondering how to calculate profit from this. I know that that is a pretty huge portion of the chapter, so I hope to learn that soon.
Another thing that I fail to understand is the idea of exits, enters, shutdowns, and sunk costs. If asked to figure that out on a graph (with the the total cost and what not given), I know that I would genuinely struggle with this. That also seems like a difficult yet important part, so I definitely plan on receiving help on this chapter.
No comments:
Post a Comment