Day 9 in MIT Sloan Fellows Class 2023, Applied Economics for managers -1

This is a micro economics course in the first core semester.

We learn the fudamental concepts in micro economics such as demand/supply curve, elasticities, opportunity cost, and sunk cost etc. 

I have already learned these concepts in my graduate university ten years ago, but the significant difference from learning at that time is deepening my knowledge through discussions in real cases and international circumstances. 

For example, we talk about economies of scale of Tesla. Tesla actually does not produce tons of electric autos. They has just produced tenth of Toyota cars, but its market evaluation is higher than the total value of other competitors. Where is Tesla came from?

This is a scalability of technology and digitalized product. They rarely experience diseconomy of scale, whereas they receive the benefit of scale dramatically.

I did not like economics before because it is too simplified and sometimes not intuitive. However, after Sloan Fellows classes, I am really interested in this subject and just wonder whether we can apply the methods for actual cases or not and why.

To deepen your understanding, the simplifaction in economics really matters to you and we need to make sure where it is. For example, demand/supply curve seems to be a straight line, but actually it's curve. We just modified it for better understanding with simplification.