100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Economics 114 Unit 6 CA$5.23
Add to cart
Quickly navigate to
Preview
  2.  
  3. Stellenbosch University (SUN)
  4.  
  5. Economics 114

Summary

Summary Economics 114 Unit 6
 14 views  2 purchases
  • Course
  • Economics 114
  • Institution
  • Stellenbosch University (SUN)
  • Book
  • The Economy

Digitally summarized economics notes for economics 114. * Please note that if the display example seems smaller than A4, the downloaded version will not be like this - it will be full-sized.

Preview 2 out of 10  pages

Document information

  • No
  • Unit 6
  • June 1, 2022
  • 10
  • 2021/2022
  • Summary

Subjects

  • economics 114
  • economics summaries
  • economics 114 summaries
  • economics
  • economics unit 6
  • economics 114 unit 6
  • ecos 114
  • ecos unit 6

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • Samenvatting The Economy - Economics (ECONOM01)
  • Summary microeconomics weeks 1-8
  • Summary of lecture notes and textbook
All for this textbook (110)

Written for

  • Stellenbosch University (SUN)
  • Economics 114
All documents for this subject (24)

Seller

avatar-seller
miaolivier16

Reviews received

Content preview

UNIT 6: THE FIRM: OWNERS, MANAGERS
AND EMPLOYEES
firm 's managers and and the
How interactions among a owners
, employees influence wages ,
work
, profits
entire
economy .




A model of bargaining within firms is built on assumptions that :




there are gains from trade
•




•
firms adopt technologies with the lowest costs

◦



wage increases have led most workers to work less

•
collective projects can result in social dilemmas
•

voluntary contracts determine the size of the surplus and how it is shared


coordination of work

In a capitalist economy the division of labour is coordinated in 2 major ways :
,




firms diff
of diff
goods produced by people / departments
•

:
components . .




•

markets : allow interaction between firms and transfer of finished products
Firms⑥ Mar@
represent concentration of economic represent decentralization of
a
power a economic
power
◦
owners and managers direct work ◦ transactions are voluntary
"
"

order is is purchase
"
command order
"
◦
◦
a an a
an -


request
e.
g. Apple hires programmers , engineers ,
etc .

e.g .
Apple purchases LCD screens from other firms



firm
Decision making process in a
-




① owners
, through a board of directors decide on long -
term strategies ,
like where / what / how
,



to produce .




② Managers are then directed to implement these decisions
③ Each workers to tasks
manager assigns
④ There is assy metric information between levels in a firm 's hierarchy .
( owners /
managers do not


always know what their subordinates know or do ;
not all commands are always carried out)

, A capitalist firm is a miniature
,
privately-owned ,
centrally planned economy .




* In markets :
people respond to prices

people follow orders
* In firms :




contracts and relationships
legal documents that of actions certain undertake
•
contracts are
specify sets parties must .




• contracts form the basis of exchange within firms



contracts for products
•

pennant transfer of the good from the seller to the buyer
•
short lived -

social interactions



contracts for labour

•

temporary transfer of authority over a worker 's activities to the manager / Owner .




•

long -
term social interactions
•


managers and employees require and develop firm -



specific assets : skills
,
networks and friendships
valuable white remains in the particular firm)
(
only remain
employee

firm closes you lose :
interests :
If a
, conflicting,
Owners , Managers and ×
your job / income .
distribution of profits
employees are United in
×
network
•
work conditions
their common interest in your
a firm 's success , as they × firm specific
-

assets
,
social -
◦

managerial perks
would all suffer if it
and technical skills • maker of key decisions
were to fail .




✗ cost of search / Unemployment

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller miaolivier16. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$5.23. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

53920 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$5.23  2x  sold
  • (0)
Add to cart
Added