At first, Luke doesn’t want to go to Alderaan, as he needs to stay at home with his aunt and uncle. When Luke discovers that his Aunt Beru and Uncle Owen have been killed by Empire, he now has nobody at home. The opportunity cost to Luke of leaving Tatooine is lower now that hisContinue reading “Luke Agrees to go to Alderaan with Ben (A New Hope)”
Category Archives: Microeconomics
Luke and Ben Meet Han Solo (A New Hope)
Obi-Wan Kenobi takes Luke to the place with the most people to find a pilot – a bar. This is because it has the lowest search cost. To find a pilot to take them to Alderaan is challenging; however, they were able to find someone, Han Solo, fairly cheaply. Search costs are the time, energy,Continue reading “Luke and Ben Meet Han Solo (A New Hope)”
Han and Lando Reunite (The Empire Strikes Back)
Han goes to Cloud City to see his old friend, Lando, to have some repairs on his ship. Han asks Lando how his gas mine business is doing, to which Lando discusses his difficulties, which are partly due to supply and labor problems. Han then tells Lando that sounds like a responsible leader, to whichContinue reading “Han and Lando Reunite (The Empire Strikes Back)”
Darth Vader’s Motivation Methods (Return of the Jedi)
Workers of all sorts need incentives or motivation of some kind so that they will be productive. There are different ways that workers choose to motivate their employees. In this case, Darth Vader is choosing to motivate his workers by threatening them in hopes to make them be more productive. Worker motivation is important inContinue reading “Darth Vader’s Motivation Methods (Return of the Jedi)”
Jabba Negotiating for Chewbacca (Return of the Jedi)
Jabba and the bounty hunter (who’s really Princess Leia) are bargaining over Chewbacca. This shows how two parties may bargain and negotiate by going back and forth and by placing values they are willing to accept in the transaction. These values are achieved by each party determining their Best Alternative To a Negotiated Agreement (BATNA),Continue reading “Jabba Negotiating for Chewbacca (Return of the Jedi)”
C-3PO and R2-D2 are Sorted for Appropriate Jobs (Return of the Jedi)
C-3PO and R2-D2 are being sorted to do specific tasks, just as workers may specialize in specific tasks within their firm. Some workers, such as C-3PO receive highly skilled jobs such as interpreting while others, such as R2-D2 receive lower-skilled jobs, such as working on the sail barge. Regardless of high or low skilled, thereContinue reading “C-3PO and R2-D2 are Sorted for Appropriate Jobs (Return of the Jedi)”
Darth Vader Hires Bounty Hunters (The Empire Strikes Back)
Darth Vader employs the bounty hunters, additional workers, to find the Millennium Falcon and Han Solo since they are becoming a much bigger problem for him relative to what they once were. This is similar to when a firm needs to hire additional workers to produce the desired output. Even though Darth Vader is veryContinue reading “Darth Vader Hires Bounty Hunters (The Empire Strikes Back)”
Yoda Training Luke to Become a Jedi (The Empire Strikes Back)
Luke goes to speak to Yoda in order to continue his Jedi training. Yoda initially told Luke that he was too old to begin the training and that it wasn’t worth it for him. Yoda did not think that Luke would be able to finish the training with the amount of time that he had.Continue reading “Yoda Training Luke to Become a Jedi (The Empire Strikes Back)”
Leia’s Home of Alderaan is Destroyed (A New Hope)
Wilhuff Tarkin gives Princess Leia the choice of telling him the location of the rebel base or else he will destroy her home planet of Alderaan. Now Leia is faced with the choice of allowing Alderaan to be destroyed or disclosing the rebel base. This, of course, relies on Wilhuff Tarkin’s threat to be aContinue reading “Leia’s Home of Alderaan is Destroyed (A New Hope)”
Leia and Han’s Motivation (A New Hope)
Princess Leia says that their mission is not over yet; however, Han says that it is for him as he “isn’t in it for the revolution” – he expects to be well paid. This is due to the heightened danger of continuing on the journey with Princess Leia. The supply of people willing to completeContinue reading “Leia and Han’s Motivation (A New Hope)”