Definition of managerial economics 7 1.2 Choice and opportunity cost 9 2.0 Basic concerns of economics 9 3.0.0 Theories of economics 12 3.1.0 The theory of demand 13 3.1.1 Tastes 14 3.1.2 Number of buyers 14 3.1.3 Income 14 3.1.5 Expectations 15 3.2 The theory of supply 16 3.3 The theory of production 16 3.4 The theory of price( in government) 17 3.5 The theory of consumer behaviour 17 3.5.1 Rational behaviour 17 3.5.2 Preferences 17 3.5.3 Budget constraint 18 3.5.4 Prices 18 4.0 Managerial Economics and Economic
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All Rights Reserved 2– 2 CLASSIFICATION OF GOODS AND SERVICES Free goods are goods that have no production cost. Public goods are goods that are for common use and will benefit everyone. Economic goods are goods of value that can be seen and touched. Economic services are intangible things (with value) that cannot been seen or touched. All Rights Reserved 2– 3 LAW OF DEMAND Law of demand states that the higher the price of a good‚ the lower is the quantity
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Origin of the Term Paper: This term paper is a requirement for the course Managerial Finance (FIN435) under our honorable instructor Md. Lutfur Rahman‚ the Department of Business Administration‚ East West University. Objectives of the study: As a part of the course Managerial Finance‚ we had the opportunity to prepare a term paper on Dividend policy and capital structure of the following DSE listed firms- ← Pran (AMCL) ← BATBC ← Dhaka Fisheries ← National Tea ← Apex
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THE FIRM’S BASIC PROFIT MAXIMIZATION PROBLEM Chapter 2 slide 1 What Quantity of Output should the Firm Produce and Sell and at What Price? The Answer depends on Revenue and Cost Predictions. The Solution is Found using Marginal Analysis. Expand an Activity if and only if the Extra Benefit exceeds the Extra Cost. MAXIMIZING PROFIT FROM MICROCHIPS 2.2 A1. Focus on a single Product‚ A2. whose Revenues and Costs can be predicted with Certainty. Revenue can be predicted using the Demand
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1. (TCO A) Suppose you are hired to manage a small manufacturing facility that produces Widgets. (a.) You know from data collected on the Widget Market that market demand has recently decreased and market supply has recently increased. As manager of the facility‚ what decisions should you make regarding production levels and pricing for your Widget facility? Remember that supply and demand are about the market supply and market demand‚ which is bigger than your own company. You are being
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Managerial accounting principles are utilized on a daily basis by managers and accounting professionals to assist them in making sound decision for companies. The company’s management collects and analyzes data to meet specific needs in different areas of operations. Four important areas management and accounting professionals concentrate on include budgeting‚ forecasting analysis and projection. Budgeting takes place at the onset of the fiscal year. Managers and accountants work in tandem
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ECN 104 Final Exam December 9th 2011 104F11FE Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. An increase in income will cause a shift in the budget constraint a. outward. b. towards the good most consumed. c. inward. d. towards the good least consumed. ____ 2. If the consumption of one good is reduced‚ how must a consumer alter his consumption of another good in order to remain indifferent between two bundles? a. He must not change his consumption
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• 3. „Expect the Unexpected.“David Axson • 4. Forecasting a critical business process in turbulent times. • 5. What is a forecast? Forward Looking Fact-based Flexible Focused on Risks & Opportunities • 6. „The end result ... is not an accurate picture of tomorrow‚ but better decisions about the future.“Peter Schwartz‚ The Art of the Long View • 7. Good forecasting practices create value Career Perform n ance Reputatio • 8. The traditional approach... J F M A M J J A S O
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Economics 1410: Public Economics – Designing Government Policy Final Examination I SHORT QUESTIONS (10 points each‚ explain your answers) 1. True / False / Uncertain: It is always better to use monetary policy for output stabilization than to use fiscal policy. False. Monetary policy becomes ineffective once real interest rates come close to zero. Also: different lag lengths. 2. True / False / Uncertain: Requiring employers to make accommodations for disabled workers and to pay disabled
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Take-Home Exam Exercise 1 (a) If the emissions in the area are left unregulated then the two factories will emit as much as they can‚ which means there will be zero abatement (MAC=0). So we have: Factory A: MACA=0 4000-EA=0 EA=4000 Factory B: MACB=0 4000-4EB=0 EB=1000 For the socially optimal level of emissions we have: MACA=4000-EA EA=4000-MACA MACB=4000-4EB EB=1000-0‚25MACB By adding the above by parts we get: E=5000-1‚25MAC MAC=4000-0‚8E The socially optimal level of emissions
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