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

Managerail Economics - Research Paper Example

Cite this document
Summary
1. The ideas of consumer surplus and producers surplus can be used to measure the efficiency of competitive markets. Together, they comprise of the total surplus (Mankiw). In the graph below, we will show that the competitive market yields the highest total surplus, compared to below- or above-equilibrium levels of output.
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.5% of users find it useful
Managerail Economics
Read Text Preview

Extract of sample "Managerail Economics"

Download file to see previous pages

Obviously C&D and E&F are smaller than A&B. 2. The cross price elasticity of demand measures the responsiveness of the demand for one good to a change in the price of another good (Mankiw). In the assignment, products A and B are substitutes since the cross-price elasticity is postive, at +3.6. Products C and D with cross price elasticity of 5.4 are also substitutes. When the cross price elasticity is positive,it means that the demand for product 1 increases as the price of the other good increases,threfore they are substitues.

MU of prod A/price of prod A = MU of prod B/price of prod B = MU of prod C/price of prod C = MU of prod D/price of prod D = MU savings/price savings, which is equal to 36/$18 = 12/$6 = 8/$4 = 2/$1. The marginal utility divided by the price is equals to 2. 4. What are given: Income from pottery sales = $ 72,000Costs:Helper = 12,000/ year yield on the $40,000 if invested = $4000/yearRent = 5000/year salary as a potter = $15,000/yearMaterials = $ 20,000/yearEquipment = $40,000 Entrepreneurial Talent = $3000Acccounting profit (1st year)= $72,000 - 12,000 - 5000 - 20,000 -40,000 = -5000On the 2nd year if there is no purchase of equipment = $72,000 - 12,000 - 5000 - 20,000 = $35000Economic profit = $72,000 - 12,000 - 5000 - 20,000 -40,000-3000-4000-15,000= -$27,000On the 2nd year if there is no purchase of equipment = $72,000 - 12,000 - 5000 - 20,000 -3000-4000-15,000 = $13000Referenceshttp://www.

crawfordsworld.com. 23 April 2010 .Mankiw, N. Gregory. Principles of Macroeconomics. 3rd. South-Western College Publishing,

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Managerail Economics Research Paper Example | Topics and Well Written Essays - 750 words”, n.d.)
Managerail Economics Research Paper Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/miscellaneous/1528863-managerail-economics
(Managerail Economics Research Paper Example | Topics and Well Written Essays - 750 Words)
Managerail Economics Research Paper Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/miscellaneous/1528863-managerail-economics.
“Managerail Economics Research Paper Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1528863-managerail-economics.
  • Cited: 0 times

CHECK THESE SAMPLES OF Managerail Economics

Impact of Elasticity of Demand on Price in the Market

Managerial economics Question: Would firms increase their revenue if they were to lower hearing aid prices?... Evaluate the situation by doing a critical analysis?... Answer: Kochkin (2005) states that though 31 million people suffer from hearing deficiency in the U.... .... hellip; yet only 7....
8 Pages (2000 words) Research Paper

Managerial economics

Managerial economics Introduction In the paper two basic concepts of micro economics is represented with the illustration of easy diagrams and short mathematical exercises.... The first one is the theory of demand and theory of supply along with market equilibrium and the other one is the production possibility frontier of two countries....
5 Pages (1250 words) Essay

Managerial Decision in Economics

Managerial decision in economics Table of Contents Executive Summary 3 Definition 3 Factors or Costs 4 Measurement 6 Analysis 8 Summary 9 Reference 11 Executive Summary The main aim of an organization's existence is to generate profits.... The study tries to unearth some of the aspects of managerial economics towards the decision of hiring by evaluating the various micro economic factors relevant to the case so as to formulate a set of plausible recommendation on this crucial aspect of managerial decision making....
8 Pages (2000 words) Research Paper

Managerial Economics

… Managerial economics Essay NAME: AFFILIATION: UNIVERSITY: COURSE TITLE: DATE OF SUBMISSION: Managerial economics Essay One of the best articles that have discussed the importance of International Trade in World Market has been published in New York Times magazine which has highlighted the importance of trade agreements in this globalization period (International Trade, 2012)....
4 Pages (1000 words) Essay

Managerial Economics

This discussion talks that the drastic decline in the prices of the US housing investments was the reason that led to the financial crisis that affected the entire world.... Housing is that asset which is endowed with services flow.... An asset like housing can either provide for consumption.... hellip; From this paper it is clear that now the value of the housing properties is determined by both the supply side and the demand side factors, which include the price at which the seller would like to go for the transaction with a prospective buyer and the actual price which the buyer would like to pay (Ngai and Tenreyro, 2009, p....
4 Pages (1000 words) Essay

Managerial Economics exam paper

The basic difference between business profits and economic profits is of implicit costs.... Business profit is the difference between revenue and explicit costs incurred by a firm… Explicit costs are expenditures that a firm incurs in earning the revenue.... For instance, purchasing land, raw materials, labor are all explicit costs....
5 Pages (1250 words) Term Paper

Mangerial Economics

The fixed costs remained the same since changes in fixed Managerial economics Question Movements along a demand curve are caused by a related change in cost, holding other variables constant (Frisch, p.... When Star Hub won the bid to broadcast the English Premier League, it announced an increase of basic packages from $4 to $24, whilst reducing the price of… This change caused a change in demand with more people subscribing for the service initially....
1 Pages (250 words) Assignment

Managerial Economics

The present paper "Managerial economics" concerns the concept of managerial economics.... It is mentioned here that with every passing year, oil appears to play an even bigger role in the global economy.... nbsp;Initially, finding oil through a drill was considered somehow a nuisance....
8 Pages (2000 words) Term Paper
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.
Contact Us