Saturday, December 21, 2019

Essay on Managerial Economics - 679 Words

Gus Bonilla MBA 217 Managerial Economics Individual Assignment 2) A firm’s product sells for $2 per unit in a highly competitive market. The firm produces output using capital (which it rents at $75 per hour) and labor (which is paid a wage of $15 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow. K | L | O | MPK | APK | APL | VMPK | 0 | 20 | 0 | - | - | - | - | 1 | 20 | 50 | 50 | 50 | 2.50 | 100 | 2 | 20 | 150 | 100 | 75 | 7.50 | 200 | 3 | 20 | 300 | 150 | 100 | 15 | 300 | 4 | 20 | 400 | 100 | 100 | 20 | 200 | 5 | 20 | 450 | 50 | 90 | 22.50 | 100 | 6 | 20 | 475 | 25 | 79.17 | 23.75 | 50 | 7 | 20 | 475 | 0 | 67.86†¦show more content†¦TR= 900 TC= 675 Profit= TR- Tc = 900- 675 = $225 f. Over what range of the variable input usage do increasing marginal returns exist? Increasing marginal returns from point 0 units of VC to 3 units. Gus Bonilla MBA 217 Managerial Economics Individual Assignment g. Over what range of the variable input usage do decreasing marginal returns exist? From unit #4 of Variable input (K) onwards there will be decreasing marginal returns h. Over what range of input usage do negative marginal returns exist? From input units 7th onwards there will be negative returns, as the firm incurs losses from this point. Where its ATC is higher than the MR. 3) Explain the difference between the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution? Law of diminishing marginal returns: †¨Ã¢â‚¬ ¨ According to the law of diminishing marginal returns, the margin product will fall if we decide to add more inputs. †¨In other words, In a production system, having fixed and variable inputs, keeping the fixed inputs constant, as more of a variable input is added, each additional unit of input yields less and less additional output. Law of diminishing marginal rate of technical substitution: This law suggests that it takes a large amount of capital to replace a unit of labor when capital use is high but little labor is used. As labor becomes more abundant and capitalShow MoreRelatedManagerial Economics12384 Words   |  50 Pages|Managerial Economics | | | |UNIT -I | | | |[Pick the date] Read MoreManagerial Questions On Managerial Economics1736 Words   |  7 Pages MANAGERIAL ECONOMICS MANDIP SINGH SETHI K1300050 TABLE OF CONTENTS INTRODUCTION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 TYPES OF DISECONOMIES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.5 DECENTRALIZATION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 CONCLUSION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..7 REFERENCE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.8 What are managerial diseconomies of scale and what, if anything, can be done about this phenomenon? DecreasingRead MoreManagerial Economics1517 Words   |  7 Pagestickets. Rachel Green, manager for the Sherman Oaks office, has been asked to recommend an appropriate level of advertising. In thinking about this problem, Green noted its resemblance to the optimal resource employment problem studied in a managerial economics course. The advertising/sales relation could be thought of as a production function, with advertising as an input and sales as the output. The problem is to determine the profit-maximizing level of employment for the input, advertising, inRead MoreManagerial Economics4591 Words   |  19 PagesMB0042 - Managerial Economics ASSIGNMENT SET I: Ans.1. The price elasticity of demand is not the same for all commodities. It may be or low depending upon number of factors. The factors which influence price elasticity of demand, in brief, are as under:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (i) Nature   of Commodities. In developing countries of the world, the per capital income of the people is generally low. They spend a greater amount of their income on the purchaseRead MoreManagerial Economics1932 Words   |  8 PagesMBA 5600 Managerial Economics Assignment #1 1. What impact will the prospect of deprivatization have on investment by managers of privatized firms? The impact will be: - Loosing corporate focus; - Missing planned CEO turnover; - Affecting planned managerial objects and strategic efficiency Obviously, normal managers invest in long-term projects, products and services, deprivatization may come up with a different strategy that not aligned with corporate goals and its profit will probablyRead MoreManagerial Economics2909 Words   |  12 PagesSEMESTER 2014 MANAGERIAL ECONOMICS – BMME5103 ASSIGNMENT (60%) Name: NGUYá »â€žN THá »Å  MINH HIá »â‚¬N Class: MBAOUM0514-K14A Question 1 a. What is (are) the main difference(s) between a monopolistically competitive market and a monopoly market? Their characteristics are different: |Monopolistically competitive market |Monopoly market | |Large number of small firms: Read MoreManagerial Economics Assignment952 Words   |  4 PagesMS- 09: MANAGERIAL ECONOMICS ASSIGNMENT Course Code : MS- 09 Course Title : Managerial Economics Assignment Code : 9/TMA/SEM-II/2010 Coverage : All Blocks Attempt All the Questions. â€Å"A close relationship between management and economics has led to the development of managerial economics.† Explain this statement. BOOK NO 1 PAGE NO. 7 Managerial Economics consists of the use of economic modes of thought to analyse business situation Spencer and Siegelman haveRead MoreManagerial Economics ( Bus529ah1 )1154 Words   |  5 Pages Managerial Economics (BUS529AH1) Final Exam Question 1. (a). Marginal Revenue (MR) is the adjustment altogether income because of a unit change in amount. So also Marginal cost (MC) is the additional cost of producing a unit. These two ideas are extremely helpful in ideal designation of assets. Assets will mean all variables of creation utilized as a partRead MoreManagerial Economics Essay5339 Words   |  22 PagesManagerial Economics: A Problem-Solving Approach 2nd Edition End-of-Chapter Questions and Answers Table of Contents Chapters 1 and 2 - Introduction and The One Lesson of Business 5 Multiple Choice Questions 5 Multiple Choice Key 5 Short Answer Questions 6 Short Answer Key 6 Chapter 3 - Benefits, Costs, and Decisions 8 Multiple Choice Questions 8 Multiple Choice Key 8 Short Answer Questions 9 Short Answer Key 10 Chapter 4 - Extent (How Much) DecisionsRead MoreManagerial Economics and Globalization997 Words   |  4 PagesECO 550: Managerial Economics and Globalization Assignment 3 Instructor: Dr. A. A. Boakye Due By: 08/08/2011 Candidate’s Name-Andre Stevenson INSTRUCTIONS: Answer ALL the questions in PART I and PART II Part 1 (40 points) 1. The WXY Corporation has fixed costs of $50. Its total variable costs (TVC) vary with output as shown in the following table. Refer to the table. The average total cost of 4 units of output is A. $27.50 B. $40.00 C. $52.50 D. $210.00 2

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