HND大二经济学.doc

The micro economic about Sony 詻筱敉 Summary: As a manager of a company, he should consider the economic of scale. It relation to many problems, like the range of cost in the long run, how to get the profit maximization, how to choose the market structure and the characters of the market and so on. This report will relation to these problems. Also it will talk about the alternatives to profit maximization. Key words: cost, profit, price and output, the structure of market Sony is a famous company in the world. The play station 2 represents a huge gamble that will pay off only if it sells in vast quantities. Sony is conscious that if the product sells in limited quantities, that its costs will be about $ 100 per unit, however , if they sell about 50 million worldwide, that its costs will drop to about $ 10 per unit. Long run is defined as that period of time when all the factors of production can be varied. If for example, a firm had been restricted because of space and now finds it can expand or move to a bigger production unit it could also perhaps purchase more equipment, employ more labor. All the factors of production can be varied a firm should be able to expand the scale of its operations to continue obtaining falling costs as output level increases. These activities should allow reductions in costs, coming about because of size and know as economies of scale. The purpose of a company is to get more profit. Sony hope that their new machine will be a focal point for devices such as TVs, audio systems, digital cameras and will connect customers to the internet. Profits can also be termed ‘Normal’ or ‘Supernormal’. Profit is the reward to entrepreneurs and the incentive that encourages them to take risks. It has two functions, one hand is that for an entrepreneur profit is an incentive to undertake a risk in the belief that a gain can be made. On the other hand, profit is also a reward. It must be earned, as we have seen, generally in an imperfect competitive situat