Market Interactions Consumer-Producer rival a Consumers attempt to locate low prices, while producers attempt to charge high prices Consumer-Consumer rival Scarcity of goods reduces the negotiating power of consumers as they compete for the right to those goods Producer -Producer rival Scarcity of consumers causes producers to compete with one another for the right to service customers The role of government Disciplines the market process Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999
Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Market Interactions • Consumer-Producer Rivalry Consumers attempt to locate low prices, while producers attempt to charge high prices • Consumer-Consumer Rivalry Scarcity of goods reduces the negotiating power of consumers as they compete for the right to those goods • Producer-Producer Rivalry Scarcity of consumers causes producers to compete with one another for the right to service customers • The Role of Government Disciplines the market process
The Time Value of Money Present value(Pv)of an amount(Fv)to be received at the end of n, periods when the per-period interest rate is" FV PV Examples? Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999
Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 The Time Value of Money • Present value (PV) of an amount (FV) to be received at the end of “n” periods when the per-period interest rate is “i”: ( ) PV FV i = n 1+ Examples?