Managerial Economics & Business Strategy Chapter 4 The Theory of Individual Behavior Michael R. Baye‚ Managerial Economics and Business Strategy‚ 6e. ©The McGraw-Hill Companies‚ Inc.‚ 2008 Overview I. Consumer Behavior Indifference Curve Analysis Consumer Preference Ordering II. Constraints The Budget Constraint Changes in Income Changes in Prices III. Consumer Equilibrium IV. Indifference Curve Analysis & Demand Curves Individual Demand Market Demand Michael R. Baye‚ Managerial
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INTERNATIONAL MANAGEMENT INSTITUTE COURSE OUTLINE: MANAGERIAL ECONOMICS PGDM 2013-15 INSTRUCTORS Dr. Rajeev Anantaram (ranantaram@imi.edu) Dr. Arnab Deb (arnab.deb@imi.edu) 1. COURSE DESCRIPTION In a scenario characterized by increasing uncertainty and competition‚ managers will be called upon to make increasingly complex decisions that will have a crucial bearing on the prospects of the firm they work for. Indeed‚ even Public Sector Undertakings (PSUs) are increasingly faced with the challenge
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Marginal Utility Suppose Mr. X is hungry and eats oranges one by one. The first orange gives him great pleasure. By the time he starts taking the second‚ the intensity of his desire diminishes to a certain extent‚ and second orange yields less satisfaction. The satisfaction derived from the third will be less than that of the second‚ that of the fourth less than that of the third and so on. In this way‚ the incremental utility will go on decreasing till it drops to zero‚ and if he takes more‚ the
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PAPER ON EFFECTS OF MARKET STRUCTURE OF AN INDUSTRY ON THE CONDUCT AND PERFORMANCE OF A FIRM This paper provides an overview of telecommunications industry in Kenya and discusses how structure of the industry can affect the conduct of a firm within an industry and also explores how market structure and conduct of the firm affect the firm’s performance. It also offers some ideas regarding the future of the telecommunications sector in Kenya. Introduction Kenya ’s earliest telecommunications connections
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Marginal Costing is ascertainment of the marginal cost which varies directly with the volume of production by differentiating between fixed costs and variable costs andfinally ascertaining its effect on profit. The basic assumptions made by marginal costing are following: - Total variable cost is directly proportion to the level of activity. However‚ variable cost per unit remains constant at all the levels of activities. - Per unit selling price remains constant at all levels of activities. -
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Marginal and absorption costing Topic list 1 Marginal cost and marginal costing 2 The principles of marginal costing 3 Marginal costing and absorption costing and the calculation of profit 4 Reconciling profits 5 Marginal costing versus absorption costing Syllabus reference D4 (a) D4 (a) D4 (b)‚ (c) D4 (d) D4 (e) Introduction This chapter defines marginal costing and compares it with absorption costing. Whereas absorption costing recognises fixed costs (usually fixed production costs) as
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Managerial Economics : The Coca-Cola Company Almost all decisions in a company have an economic consequence. Managerial economics is an integral‚ relevant part of business management processes that involves cost‚ revenues and profits‚ considering not only the monetary costs‚ but nonmonetary costs as well – monetary‚ in terms of cash flow in and out and any excess revenue over costs or profit; nonmonetary‚ in terms of benefit for the consumer – whether its affect psychically is good or bad causing
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Managerial Economics Q.1.0) For each of the following events‚ assume that either the supply curve or the demand curve (not both shifted). Explain which curve shifted and indicate the direction of the shift. a.From 1950 to 1979 the wages paid to fruit pickers increased while the number of fruit pickers employed decreased. b.During the same period the price of radio sets declined‚ while the number of radio sets purchased increased. c.Housing prices are rising but more houses are sold. d.Australian
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THEORATICAL REVIEW: Project manger is expected to select the the project which is benificiary to the organization. Cost benefit anlysis is done by the project manger. It is highly unlikely that project manger select the the project whose cost exceeds its benefits. Benefits can be measured either finacial or non-finacial. The puposuse of idetifying the financial benefits is called copital budgeting‚ which may be defined as decision making process by which organization evaluate the projects that
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P2.6 Price and Total Revenue. The Portland Sea Dogs‚ the AA affiliate of the Boston Red Sox major league baseball team‚ have enjoyed a surge in popularity. During a recent home stand‚ suppose the club offered $5 off the $12 regular price of reserved seats‚ and sales spurted from 3‚200 to 5‚200 tickets per game. A. Derive the function that describes the price/output relation with price expressed as a function of quantity (tickets sold). Also express tickets sold as a function of price
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