If you’ve read and understood this book, you should know how to:
- 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 investment and shut-down decisions.
- Set optimal prices and price discriminate.
- 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.
Take a few minutes and share which of these concepts and skills you feel are going to be of greatest influence on your future.
Which of these concepts would have been really helpful to know in the past? What would it have changed?