1 / 38

Economics for Leaders

Economics for Leaders. Lesson 6: Incentives, Innovation & the Role of Institutions. We Are A Community. How Was The Fashion Show?. Incentives & the Entrepreneur. How do incentives motivate entrepreneurial activity? Do it if…… MB > MC. Climbing Out on a Limb (Risk).

jeneva
Download Presentation

Economics for Leaders

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Economics for Leaders Lesson 6: Incentives, Innovation & the Role of Institutions

  2. We Are A Community

  3. How Was The Fashion Show?

  4. Incentives & the Entrepreneur • How do incentives motivate entrepreneurial activity? • Do it if…… • MB > MC

  5. Climbing Out on a Limb (Risk)

  6. Climbing Out on a LimbIncentivesMB > MC ?

  7. Climbing Out on a LimbIncentivesMB > MC ?

  8. Climbing Out on a LimbIncentivesMB > MC ?

  9. Climbing Out on a Limb Incentives MB > MC ? Profit

  10. People engage in risky behavior based on the expectation of earning a profit. Competition between producers drives prices down, squeezing profits. Competition between producers leads to innovation and improves quality. PROFIT is the MOTIVATOR. COMPETITION is the REGULATOR. Production & Competition

  11. Makin’ Muffins

  12. Makin’ Muffins MB > MC ?

  13. Makin’ Muffins Lots of stuff for YOU!

  14. Makin’ Muffins MB > MC ?

  15. Makin’ Muffins No stuff for YOU!

  16. Makin’ Muffins

  17. Makin’ Muffins Lots of stuff for YOU!

  18. Makin’ Muffins + = Entry & Innovation =

  19. Makin’ Muffins: Entry + = More Entry & Innovation =

  20. Makin’ Muffins + And More Entry & Innovation =

  21. The Story of Ernő Rubik Institutions Matter!

  22. Let’s Play! The Lollipop Game

  23. People engage in risky behavior based on the expectation of earning a profit. The entrepreneur is the residual claimant. Competition between producers drives prices down, squeezing profits. Competition between producers leads to innovation and improves quality. Big Ideas

  24. Resources chase profit (entry) Resources run away from loss (exit) PROFIT is the MOTIVATOR COMPETITION is the REGULATOR INSTITUTIONS MATTER! Big Ideas

  25. Where there is no risk, there can be no pride in achievement! Quote of the Day WHO said this?

  26. Where there is no risk, there can be no pride in achievement! Residual Claimant gets profit for taking risk. PROFIT is the MOTIVATOR. COMPETITION is the REGULATOR. Quote of the Day Ray Kroc

More Related