Unit – I Nature & Scope of Managerial Economics Contents Fundamental Economics Concepts: Opportunity Cost‚ Discounting principle‚ Time perspective‚ Incremental reasoning‚ Equi-marginal concept. Marginal concept in economics. Economics of information: Risk‚ Uncertainty‚ Asymmetry of information‚ Adverse Selection‚ Market Signaling. The theory of firm; Econometric Models & Economic optimization. ____________________________________________________________________________________
Premium Economics
IA 710 CLASS 1 Scarcity‚ shortage and substitutability 1. Answer all parts: a) What do you think is meant by the concept of constrained choice? Why is economics often described as the science of constrained choice? b) Explain how scarcity‚ choice and opportunity cost are relevant when choosing amongst alternatives? 2. Define the concept of “opportunity cost” and discuss various examples. 3. Explain how the concept of opportunity cost may be used to explain the following:
Premium Supply and demand Consumer theory
EC 109 Autumn 2011 Dr. Mani Problem Set 2 Due Date: Oct31‚ Monday – between 9 & 11 AM in room S 2.132 Please keep a copy of your assignment and show all your work clearly. (1) Mr. J. Bond‚ a retired movie actor‚ consumes only grapes and the composite good Y (i.e. price of Y is £1). His income consists of £10000 a year from his investment fund plus the proceeds of whatever he sells of the 2000 bushels of grapes he harvests
Premium English-language films Bond 1967
KENYATTA UNIVERSITY SCHOOL OF ECONOMICS DEPARTMENT OF APPLIED ECONOMICS EAE 307: INTERNATIONAL ECONOMICS I INSTRUCTOR: P. M. KUUYA SCHOOL OF ECONOMICS DEPARTMENT OF APPLIED ECONOMICS EAE 307: INTERNATIONAL ECONOMICS I LECTURER: P. M. KUUYA TABLE OF CONTENTS 1 LECTURE ONE 6 1.0 INTRODUCTORY LECTURE 6 1.1 Why
Premium International trade
Industrial Economics Term Paper First Draft A manager has to make demand analysis‚ anticipate time value of money‚ detemine supply and demand levels‚ create a goal for his/her firm and understand the importance of profits‚ use his/her company’s products’ elsaticity tendencies before produce them in large quantities‚ maximize it’s profits and minimize production costs. A firm can be merge with another one because of profit maximization target and minimizing it’s cost. Experiences are also important
Premium Supply and demand Consumer theory Microeconomics
Principles of Economics (Common for Private Registration to BA History‚ Political Science‚ Sociology‚ & Islamic History Programmes) 1. a) b) c) d) e) In Economics the central problem is: money production consumption allocation scarcity 2. a) b) c) d) Macroeconomics deals with: the behaviour of firms. the activities of individual units. economic aggregates. the behaviour of the electronics industry 3. a) b) c) d) Microeconomics is not concerned with the behaviour of: firms. aggregate demand.
Premium Economics Supply and demand Consumer theory
firms are buyers. -Inner loop of circle reps flows of inputs and outputs -Outer loop reps corresponding flow of dollars -More complex circle flow diagram includes roles of government and international trade Production Possibilities Frontier -Graph that shows the various combinations of output that the economy can possibly produce given the available factors of production and the available production technology that firms can use
Premium Supply and demand Consumer theory
Review Sheet for Test 1 Chapter 1 • Accounting cost‚ Implicit costs‚ Economic cost • Accounting profit / Economic profit • Normal profit • Finding derivatives o For instance how to find marginal benefit (MB) or marginal revenue (MR)‚ marginal cost (MC)‚ etc. • Optimization rule (For instance‚ how to find output level Q that maximizes total revenue‚ or total profit) • Marginal analysis Chapter 2 • Demand function. • Determinants of demand
Premium Consumer theory Supply and demand Microeconomics
The following are the questions for the take home quiz. Please answer on separate piece of paper. This is due in class‚ not after class‚ not by the end of day‚ but at the beginning of class on January 6th. This is open book‚ but must be your own work. Please do not work around or interpret this requirement as vague or leaving any room for consulting classmates or other help on this work IN ANY WAY‚ SHAPE‚ OR FORM. It is obvious when students work together or get assistance on assignments like
Premium Employment
ECON 1001 – INTRODUCTION TO MICROECONOMICS COURSE OUTLINE 1. Is economics a Science? Discuss 2. Sketch the following graphs: (a) y = x (b) Y= 3x + 1 (c) Y= 10 – 3X (d) Y = 3 3. Identify the 2 curves in question 2 which are positively sloped. Explain. (b) Identify which curve in question 2 is negatively sloped. Explain. (c) Identify which curve in question 2 has zero slope. Explain. 4. What does ceteris paribus mean? Why is the concept useful to economists? 5. Why does the distinction
Premium Supply and demand Consumer theory