Peaks and Valleys: Making Good And Bad Times Work For by Spencer Johnson

By Spencer Johnson

From the number one New York instances bestselling writer of Who Moved My Cheese?, a super new parable that indicates readers the right way to remain calm and profitable, even within the such a lot demanding of environments.

A younger guy lives unhappily in a valley. sooner or later he meets an previous guy who lives on a mountain top. first and foremost the younger guy doesn’t notice that he's chatting with probably the most peaceable and winning humans on this planet. yet during additional encounters and conversations, the younger guy involves take into account that he can observe the outdated man’s extraordinary ideas and useful instruments to his personal existence to alter it for the higher.

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Extra info for Peaks and Valleys: Making Good And Bad Times Work For You--At Work And In Life

Example text

A profit maximizing cartel attempts to maximize the aggregate profits of all firms, and makes the same price and output decisions as the multiplant firm, equating the cartel’s overall marginal cost with the industry’s marginal rev enue. The distribution of the market between the firms is determined by marginal cost consid erations, and agreement is reached between firms as to the redistribution of profits, with the firms producing most of the output (the lowest cost ones) making payments to higher cost firms in order to reduce the incentive of the latter to expand their output.

Ec o n o m i e s o f s c a l e and minimum efficient scale effects, for example, force the aspiring entrant to barriers to entry and exit come in on a large scale (with all the risks and costs this entails, particularly if incumbents are unable to accommodate the new entrant and are thus expected to retaliate), or accept a cost dis advantage. In addition, the absolute size of the required investment in certain industries and the fact that such investment may have to be made up front, and can be unrecoverable, limits the pool of potential entrants and may act as a deter rent for smaller potential entrants.

Cambridge, MA: Harvard University Press. Harrigan, K. R. (1981). Barriers to entry and competitive strategies. Strategic Management Journal, 2, 395 412. Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, 57, 2, (March/April), 137 45. Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.

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