Economics Of Strategy 7th Edition By David Dranove – Test Bank

Examination Bank For Economics Of Strategy 7th Version By David Dranove

ISBN: 978-1-119-04231-0

Economics of Strategy concentrates on the vital economic ideas students need to understand to formulate a strong business approach. Ideal for undergraduate managerial economics and business strategy courses, Economics of Strategy provides a meticulous yet approachable interpretation of advanced economic principles to practical challenges confronting business executives. Equipped with fundamental concepts, today’s students—future managers—will be prepared to adapt their organizations’ business strategies to the demands of the continually changing environment.

TABLE OF CONTENTS

• Introduction: Strategy and Economics 1
• Why Study Strategy? 1
• Why Economics? 2
• The Necessity for Principles 2
• So What’s the Issue? 3
• A Framework for Strategy 5
• Boundaries of the Firm 6
• Market and Competitive Analysis 6
• Positioning and Dynamics 6
• Internal Organization 6
• The Book 7
• Endnotes 7

Economics Primer: Basic Principles

• Costs 9
• Price Functions 9
• Total Cost Functions 9
• Fixed and Variable Costs 11
• Average and Marginal Cost Functions 11
• The Importance of the Time Interval: Long-Run versus Short-Run Cost Functions 14
• Sunk versus Avoidable Costs 16
• Economic Costs and Profitability 17
• Economic versus Accounting Costs 17
• Economic Income versus Accounting Income 18

Principle of the Firm: Pricing and Output Decisions

Ideal Competition 25

Game Theory 29

Games in Matrix Form and the Concept of Nash Equilibrium 30

Game Trees and Subgame Perfection 31

Chapter Summary 33

Questions 33

Endnotes 34

Part One Firm Boundaries

1 The Power of Principles: An Historical Perspective 37

Doing Business in 1840 37

2 The Horizontal Boundaries of The Firm 55

3 The Vertical Boundaries of The Firm 90

4 Integration and Its Options 124

…

Part Four Internal Organization

12 Performance Measurement and Incentives 385

13 Strategy and Structure 419

14 Environment, Power, and Culture 456

Glossary

Name Index •••

Subject Index •••