Assignment 1 ECO 740 SEPT 2014
FACULTY OF COMPUTER SCIENCE AND MATHEMATICAL STUDIES
ECO 740: ECONOMIC ANALYSIS
ASSIGNMENT 1
NAME : CAROLINE HENRY
MATRIC NUMBER : 2014261072
FACULTY OF COMPUTER SCIENCE AND MATHEMATICAL STUDIES
ECO 740: ECONOMIC ANALYSIS
Assignment 1
Answer all questions
Discussion Questions
1 Define what is economics and its relationship with the managerial economics.
Economics is the study of human behaviour in producing, distributing and consuming goods and services in a scarce environment. While managerial economics is the application of Economic Theory and Decision Sciences in solving the managerial problems faced by the society. We could see the relationship between economics and managerial economics when we use economic analysis in making business decisions for choosing the best choice for the organization in achieving the objective of the organization.
2 Managerial economics uses the theories of economics and the methodologies of the decision sciences for managerial decision-making. Elaborate.
Managerial decision-making arises due to the problems faced by the organizations in achieving its objectives.
Managerial decision problems like the amount of products that is needed to be produced, the type or kind of product to be produced, the technique or method of producing a product, the price of product, strategies needed to maximize the profit of the organization and other problems have to be solved in order to achieve the organization’s goals.
The process of managerial decision-making applies both economic theory and the tools of decision science in solving these problems where economic theories seek to predict and explain the economic behaviour of the problem and decision science uses the tools of
3 Identify the areas of decision making where managerial economics prescribes specific solutions to business problems
4 Write short notes on the following:
a) Opportunity cost
Opportunity cost or also known as the
ECO 740: ECONOMIC ANALYSIS
ASSIGNMENT 1
NAME : CAROLINE HENRY
MATRIC NUMBER : 2014261072
FACULTY OF COMPUTER SCIENCE AND MATHEMATICAL STUDIES
ECO 740: ECONOMIC ANALYSIS
Assignment 1
Answer all questions
Discussion Questions
1 Define what is economics and its relationship with the managerial economics.
Economics is the study of human behaviour in producing, distributing and consuming goods and services in a scarce environment. While managerial economics is the application of Economic Theory and Decision Sciences in solving the managerial problems faced by the society. We could see the relationship between economics and managerial economics when we use economic analysis in making business decisions for choosing the best choice for the organization in achieving the objective of the organization.
2 Managerial economics uses the theories of economics and the methodologies of the decision sciences for managerial decision-making. Elaborate.
Managerial decision-making arises due to the problems faced by the organizations in achieving its objectives.
Managerial decision problems like the amount of products that is needed to be produced, the type or kind of product to be produced, the technique or method of producing a product, the price of product, strategies needed to maximize the profit of the organization and other problems have to be solved in order to achieve the organization’s goals.
The process of managerial decision-making applies both economic theory and the tools of decision science in solving these problems where economic theories seek to predict and explain the economic behaviour of the problem and decision science uses the tools of
3 Identify the areas of decision making where managerial economics prescribes specific solutions to business problems
4 Write short notes on the following:
a) Opportunity cost
Opportunity cost or also known as the