BA 3301 Lecture Notes - Lecture 9: Invisible Hand, Oligopoly, Market Price
Document Summary
Lecture 2: business environment: transformaional system, components. External environment (poliical, economic, social, technological, environmental, legal, suppliers, compeitors, labour market, etc. ) Diferent countries and diferent ime periods provide diferent challenges and opportuniies: firm in the environment, two levels of external environment. The environmental external inluences are almost ininite in number and variety and no study could hope to consider them all. Economics - studies producion, distribuion and consumpion of scarce goods and services: microeconomics (individual, company, consumer level, macroeconomics (public, social level) The economic system has a large impact on businesses and their ability to operate. Risk is a part of the free-market system: scarcity, supply and demand. Scarcity all things are limited, or people can"t access them, or can"t aford them . Supply how willing and able are the sellers to provide goods and services at a given price. Demand how willing and able are the buyers to purchase goods and services at a given price: market price/ equilibrium price.
