Discussion 11

We have covered a lot of subjects. We would love to hear what your takeaway is for the following:

• What things do you think you will use the most?
• What did you find most interesting?
• What did you never know before?

Looking back, here is a list of some of the concepts and skills we covered:

• Use the rational-actor paradigm, identify problems, and then fix them.
• Use benefit-cost analysis to evaluate decisions.
• Use marginal analysis to make extent (how much) decisions.
• Make profitable investments and shutdown decisions.
• Set optimal prices and price discrimination.
• Predict industry-level changes using demand and supply analysis.
• Understand the long-run forces that erode profitability.
• Develop long-run strategies to increase firm value.
• Predict how your own actions will influence other people's actions.
• Bargain effectively.
• Make decisions in uncertain environments.
• Solve the problems caused by moral hazard and adverse selection.
• Motivate employees to work in the firm's best interests.
• Motivate divisions to work in the best interests of the parent company.
• Manage vertical relationships with upstream suppliers or downstream customers