Reading #16: Organizing Production

Economic Profit = Total Revenue - Opportunity Costs (Total Costs)
opportunity cost = Explicit cost + implicit cost
Implicit cost = the opportunity cost to a firm of using its own capital + the oportunity cost of the time and financial resources of the firm's owners.
*implicit rental rate = economic depreciation + foregone interest

Constrained Profit Maximation
1. Technology Constraints
2. Information Constraints
3. Market Constraints

Technological Efficiency vs. Economic Efficiency
技术效率是在既定产出的条件下使用最少量的投入，投入包括生产要素各种要素。经济效率是在既定产出的条件下使成本最小化，不计较是否有技术效率，即有经济效益未必有技术效率，有技术效率不一定就有经济效率。

Ways of Organizaing Production:
I. Command System
II. Incentive System
在处理经营权和所有权分开的股份公司的职业经理人的关系时，为了在激励体制下更能发挥经理人的作用，一般会采取以下3中方法:
1. Ownership. 奖励配股
2. Incentive Pay. 绩效工资
3. Long-term Contract. 为了使CEO能够更好的作出成绩，给予长时间聘用合同有助于CEO质地计划的战略考虑和部署。

Types of Business Organizations:
I. Proprietorship
II. Partnership
III. Corporation
主要区别在于责任，募集资本难度，和税收程度(I&II 是一次性缴税，III为双次缴税)上体现不同。

Types of Economic Markets:
I. Perfectly Competitive
II. Monopolistic Competitive
III. Oligopoly
IV. Monopoly

Four Firm Concentration Ratio:
通过对某行业中四大企业固定期间的总销售额之和来度量，FFCR>60% 此行业为寡头 FFCR<40%>1800属于非竞争市场。

Firm Coordination Vs. Market Coordination
市场协调和企业协调 （另作专题）