CHRYSLER

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CHRYSLER

• Group 5

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Table of Contents

• Lawrence Latta
• History, Innovations, Definition of Economics,
  and Chrysler
• Mike Hamilton
• Factors of Production, Opportunity Cost,
  Compliments, and Substitutes
• Dayna Greenfield
• Supply and Demand
• Taylor Frankovitch
• Elasticity, Law of Diminishing Utility, Law of
  Diminishing Return, Factor Markets, Price
  Discrimination

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History

• Incorporated June 6, 1925 by Walter P. Chrysler
• New designs and innovations helped company grow
• By 1926 the company was fifth place in industry
  sales

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Chrysler Innovations

• Power steering 1951
• Key-operated ignition
• Seatbelts and AC 1955
• HEMI!!!

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What is Economics?

• Economics is the study of how society chooses to
  allocate its scarce resources in order to satisfy
  unlimited wants and need.
• Economics is important for all consumers and
  producers.

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Factors of Production

• Land
• Labor
• Capital
• Entrepreneurial Activity

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Land

• Refers to natural resources
• any free gift of nature Dr. Gregor
• The land on which headquarters, factories,
  warehouses, and dealerships are built.

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Labor

• Refers to time human beings spend producing goods
  and services.
• For example the hours the worker spends working
  on the assembly line.

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Capital

• Refers to something produced that is long lasting
  and used to produce other goods.
• Ex.- Factories, machinery, and skills of
  employees, and the actual assembly line

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Entrepreneurial Activity

• When someone recognizes opportunity and takes
  advantage of the opportunity
• When the engineers develop new technology and
  ideas that are used in the cars.

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Opportunity Cost

• What is given up when taking an action or making
  a choice.
• Opportunity cost is the most accurate way in
  measuring cost.

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Substitutes

• A good that can be used in place of some other
  good that fulfills more or less the same purpose

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Compliments

• Is a good that is used with the good we are
  concerned with.

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Supply

• What is supply?
• Supply is a relationship showing the various
  amounts of an item that sellers are willing and
  able to make available for sale at various
  possible alternative prices, during a given
  period of time.
• Ceteris Paribus- INEPT
• What is the law of supply?
• As the price of a good increases and everything
  else remains the same, the quantity supplied also
  increases

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Supply Continued

• Input Prices
• Number of firms
• Expectation of Sellers
• Price of Alternative Goods
• Technology

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Graph of Supply
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Demand

• What is demand?
• Demand is the relationship showing the various
  amounts of an item which buyers are willing and
  able to purchase at various possible alternative
  prices, during a given period of time.
• Ceteris Paribus- INEPT
• The law of Demand
• As the price of a good increases and everything
  else remains the same, the quantity of the good
  demanded will decrease

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Demand

• Income
• Number of Consumers
• Expectation of Buyers
• Prices of Related Goods
• Tastes

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Graph of Demand
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Supply Demand

• Does supply influence demand?
• Remember that a change in price of an item will
  NEVER cause a change in the demand or supply
  curve.
• It may cause a change in the quantity
  demanded/supplied of the item

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Supply Demand
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Elasticity of Demand

• Represents a how the demand for a good changes
  with a price increase or decrease.
• Elasticity of Demand The change in the
  quantity demand / The change in price.

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Determinants of Elasticity

• Availability of Substitutes
• Narrowness of the Market
• Tastes
• Time period
• of a consumers budget

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Law of Diminishing Marginal Utility

• During a given period of time, while tastes
  remain the same will reach a point where any
  further consumption will result in less marginal
  utility
• MU ?TU / ?Q

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Law of Diminishing Return

• As we continue to add more of any one input,
  holding all other inputs constant, its marginal
  product will eventually decline.

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Factor Markets

• Perfect Competition
• Monopoly
• Monopolistic Competition
• Oligopoly

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Perfect Competition

• Characteristics
• Large number of buyers and sellers
• Homogenous products
• Easy entry / exit
• Perfect knowledge of product

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Monopoly

• Characteristics
• Heterogeneous product
• Barriers of Entry
• Only one seller

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Monopolistic Competition

• Characteristics
• Heterogeneous product
• Firms face a downward sloping demand curve
• Large number of actors
• Relatively easy entry / exit

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Oligopoly

• Characteristics
• Few firms
• Dependent on each other
• Economies of scale
• Non-price discrimination

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Price Discrimination

• Necessary Conditions
• Some degree of monopolistic power
• Ability to determine different elasticity of
  demand
• Separate markets by elasticity
• Prevent resale

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What We Learned

• History
• Innovations
• Economics and Chrysler
• Factors of Production
• Opportunity Cost
• Substitutes and Compliments
• Supply and Demand
• Elasticity of Demand
• Law of Diminishing Marginal Utility
• Law of Diminishing Returns
• Factor Markets
• Price Discrimination

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Any Questions?
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Happy Veterans Day
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THE END
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Presented By

• Taylor Frankovitch
• Lawrence Latta
• Mike Hamilton
• Dayna Greenfield