StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Managerial Economics Week 6 Individual Work 2 - Assignment Example

Comments (0) Cite this document
Summary
From the relationship, it is evident that an increase in enrolment gives uncertain results regarding the behavior of the operating expenditures per student. Several…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.4% of users find it useful
Managerial Economics Week 6 Individual Work 2
Read TextPreview

Extract of sample "Managerial Economics Week 6 Individual Work 2"

Download file to see previous pages This is because as the output increase at one point, it does not necessarily increase at another point and the inverse is true. The increase in the operating expenditures per student does not bring out a large decrease to enrollment but rather there is an explicit nature of the function.
Apart from enrollment, the other important variable in explaining the variations in operating expenditures per student is the teacher salary variable. This teacher salary variable is significant in the sense that it promotes a higher level of motivation thus the operating expenditure per student will decrease. A decrease in teacher salary brings about an increase in the operating expenditure per student. When there is a higher rise in teacher salary, the operating expenditure per student will also rise significantly.
Minimization is always ideal achieving the best of benefits in every institution. In this case, expenditures reduce and at the same time, there is a reduction in the enrollment level. Barriers towards enrollment also do not exist and it is a case of unconstrained optimization. To minimize on the operating expenditure per student the calculation takes the derivative of the operating expenditure with respect to enrollment.
30.9 is the reduction level towards the operating expenditure per student that will occur upon adding one more student. This is because at this point (500) there are economies of scale and there are positive externalities.
The regression value does not show a good fit value since it is less than 0.75. This is because the right hand side variables also do not fully explain most of the variations or changes. There is an inverse relationship between enrollment level and expenditure whereby the enrollment level increases as the operating expenditure declines. Economies of enrollment that can also show the size can decrease whenever the expenditures reduce as the enrollment ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Managerial Economics Week 6 Individual Work 2 Assignment”, n.d.)
Managerial Economics Week 6 Individual Work 2 Assignment. Retrieved from https://studentshare.org/management/1642006-managerial-economics-week-6-individual-work-2
(Managerial Economics Week 6 Individual Work 2 Assignment)
Managerial Economics Week 6 Individual Work 2 Assignment. https://studentshare.org/management/1642006-managerial-economics-week-6-individual-work-2.
“Managerial Economics Week 6 Individual Work 2 Assignment”, n.d. https://studentshare.org/management/1642006-managerial-economics-week-6-individual-work-2.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Managerial Economics Week 6 Individual Work 2

Educational study

11 Pages(2750 words)Research Paper

Unit 3/7: Management Research Project Stage 1 -Written Proposal-

...within one week. Results should be analyzed within one week. If there are some unforeseen problems, one more week should be allowed to complete the research project. Hence in a time frame of less than four weeks, this research should be completed. As the research project proceeds, all the activities should be monitored and updated. For example, if the data are not reported at the end of the working day, it must be collected firsthand by the person doing the research next day. Involvement of the researcher in all activities will help complete the project in time. 6. Conclusion The economic crisis faced by the company CBM...
6 Pages(1500 words)Essay

Economics of Organisation

.... T.Stratopoulos, Charos & Chason, ‘A Translog Estimation of the Average Cost Function of the Steel Industry with Financial Accounting Data’ International Advances in Economic Research Vol 6 2 May 2000 Pp 271 – 286 (WEB) D. Caves, L.Christensen & Tretheway ‘Flexible Cost Functions for Multiproduct Firms’ Review of Economics & Statistics 62 3 477-481 Aug 1980 Topic 3. Limitations of the neo-classical model: scale and scope, bargaining transactions, the ‘hold up’ problem & vertical integration. Although it is possible to produce ‘technical’ answers to questions about the scale and scope of firms, these...
15 Pages(3750 words)Essay

Economics of Leisure

...and innovation. In 1930s, John Maynard Keynes, one of the neo-classical economists predicted that people would only need to work for less than 15 hours in a week by 2030. 84 years after Keynes prediction, it appears that people are working even more hours with the advancement of technology. Questions asked by neo classical economists are whether the trends conform to economic priori as adopted by the classical. The discussion in this paper will negate the notion that advancement in technology associated with economic growth results into high leisure hours. It will also discuss the reasons as to why this happens. Discussions Economic...
7 Pages(1750 words)Essay

Managerial Economics Week 7 Individual Work

...MANAGERIAL ECONOMICS WEEK 7 Insert Insert Q7 a) Impact of a cut price on total revenue TR=P.Q 5% reduction on price($10) P=$9.5 TR=9.5*20000 =19000 The initial total revenue is : 10*20000=200000 200000-190000=10000 With a 5% decrease in price, the total revenue will reduce by $10000 TC=FC+VC=60000+120000=180000 TC=$180000 A reduction in prices will not affect the total costs in this case. Total profits after the reduction become: 190000-180000= 10000 ∏=$10000 Initial total revenue is $200000, after the reduction the total revenue is $190000. A 5% reduction in prices reduces the profits by $ 10000. b) Average variable costs after a 10% increase in...
3 Pages(750 words)Assignment

Managerial Economics Week 12 Individual Work

...MANAGERIAL ECONOMICS WEEK 12 Insert Insert Total costs = $20, Total benefits = 13.12 Discount = 10% of $13.12 312 Discount = 10% of $20 = 2 Discounted incremental costs = $18 Discounted incremental benefits = $11.808 BCR = Discounted value of incremental benefits ÷ Discounted value of incremental costs = 11.808÷ 18 = 0.656 2 After discounting the costs against benefits, the BCR value is less than 1. This means the project should be rejected. 3 Intangible benefits and costs include important aspects of the project whereby it is very difficult to attach a monetary value. Intangible benefits of the fairground redevelopment project include increased employment opportunities for people. Despite the fact that it is difficult to place... . There...
3 Pages(750 words)Assignment

Managerial Economics Week 2 Individual Work

... 946.269 MEAN TEMP, 0F 24849.333 24849.333 Data Interpretation The company’s demand function is: Y = A + B1X + B2P + B3I CANS/CAPITA/YR = 514.267 - (242.971 * 6-PACK $ PRICE) + (1.224 * INCOME $/CAPITA) + (2.931 * MEAN TEMP, 0F) Point price elasticity at Alabama, X=2.19, P=13, and I =66. Demand function is estimated to be: CANS/CAPITA/YR = 514.267 - (242.971 * 6-PACK $ PRICE) + (1.224 * INCOME $/CAPITA) + (2.931 * MEAN TEMP, 0F) 2. QD = 514.267 – (242.971*2.19) + (1.224*13) + (2.931*66) = 514.267-532.1065+15.912+193.446 =191.5185 Price elasticity ED = (Q/P)(P/Q) = (-242.971) (2.19/191.5185) = -21248.0 which is inelastic 3. QD = 514.267 + (1.224*13) + (2.931*66) = 723.625 Omitting the prices... ...
3 Pages(750 words)Assignment

Financial Management Individual Work 2 Week 2

...Finance and Accounting Financial Management Individual Work 2 Week 2 Describe briefly the Legal Rights and Privileges of Common Stockholders:- Commonstockholders have various legal rights and privileges such as common stockholders get the ownership of the company as per their shareholding percentages. Common stockholders have the voting rights in electing the board of directors of the company. They can participate in the annual general meeting of the company. Write out a Formula that can be Used to Value any Stock, Regardless of its Dividend Pattern:- The value of any financial asset can be equal to present value of future cash flows of the asset. When...
2 Pages(500 words)Essay

Financial Management Individual Work 2 Week 6

...if taken as signal to the firm with relatively few worthy speculation opportunities. 3. Selling shareholders may not be completely knowledgeable about the repurchase; henceforth they may make an ignorant decision and later prosecute the company. To evade this, firms usually publicize repurchase programs early. g. Firms create dividend policy inside the agenda of their general financial plans. The steps in setting policy are listed below: 1. The firm projects its yearly capital accounts and its yearly sales, alongside with its working capital needs, for a somewhat long-term forecasting prospect, often 6 years. 2. The targeted capital structure, apparently the one that minimizes the...
2 Pages(500 words)Essay

Pursuing a Masters in Accounting

1 Pages(250 words)Personal Statement
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Managerial Economics Week 6 Individual Work 2 for FREE!

Contact Us