MBA 6651
Ch. 4 Demand Analysis
Dr. Wendy Bailey
Slides related to utility analysis and the foundation of demand curves:
Utility represents the want-satisfying power or
pleasure one receives from consuming a good or
service. In this context, we deviate fro
Eco 2252: Microeconomics
Slide
1
Chapter 20: Elasticity
Chapter Goals
To be able to:
Define, calculate, and explain the factors
that influence the price elasticity of demand
Define, calculate, and explain the factors
that influence the cross elasticity
MBA 6651: Managerial Economics
Slide
1
Dr. Wendy Bailey
WHAT EXACTLY IS
MANAGERIAL ECONOMICS?
How Is Managerial Economics Useful?
Evaluating Choice Alternatives
Identify ways to efficiently achieve goals.
Specify pricing and production strategies.
Pro
MBA 6651: Handout on Finding Maximums and Minimums
Dr. Wendy Bailey
Note: Make sure you review the handout on what differentiation is before you review this one!
1. TOTAL REVENUE MAXIMIZATION
a) Total revenue reaches a maximum when marginal revenue is equ
MBA 6651
Differentiation: What is It?
Dr. Wendy Bailey
In this class well use marginal analysis by applying basic techniques of calculus (the concept of the
derivative). The textbook does the derivatives for you, but you do need to understand the basic co
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Review of Mathematical Concepts
Used in Managerial Economics
Economics is the most mathematical of all the social sciences. Indeed, to the uninitiated reader, many academic journals in economics resemble a math
MBA 6651
Chapter 2: Economic Optimization
Slides
1-2
ECONOMIC OPTIMIZATION
Many problems in economics involve
optimization, where the goal is to find the best
possible solution to a problem.
What output level and price will earn the firm
maximum profit o
MBA 6651: Rearranging Equations - A Tutorial
Dr. Wendy Bailey
This handout reviews basic algebra rules used to rearrange equations. In this class, you
will often be required to rearrange equations to solve for a different variable, so you must
remember th
MBA 6651
Chapter 3: Demand & Supply
Slide
1
Warning: Do not assume just because you took
economics at some point in the past that you
remember enough to understand this chapter well. If
you don't remember the difference between a change
in quantity demand
MBA 6651: Review Questions on Elasticity
Dr. Wendy Bailey
Use the information in the table below to answer the following questions:
Product
Before
After
Price in $
Quantity
Price in $
Quantity
Good X
30
75
30
45
Good Y
35
60
45
42
1. What is the price ela
MBA 6651: Statistical Analysis of Economic Relations
Dr. Wendy Bailey
I. Evaluation of Regression Coefficients Themselves (t-test)
A. Purpose: to see if regression coefficients, with a certain degree of confidence, are truly
reflective of the population b
MBA 6651
Ch. 5 Demand Estimation
Slide
1
Dr. Wendy Bailey
STATISTICAL ANALYSIS
One of the most useful techniques in economics
is regression analysis.
Economists try to determine the relationships
between variables, but also try to quantify those
relation
MBA 6651: Handout on Production Analysis
Dr. Wendy Bailey
Total Product
Graphical Representation of Short Run Production Functions
TP or Q
A
B
C
Variable Input
MP, AP
0
AP
0
RANGE
A
B
C MP
TP or output
increasing at an
increasing rate
(growing quickly)
in
MBA 6651
Ch. 7 Production Analysis (Part I)
Slide
1
Ch. 7: Production Analysis, Part I
Dr. Wendy Bailey
This chapter is split into two parts to make it a bit
easier to digest.
Selected topics to be covered:
1. The Production Function
2. Production in the
MBA 6651
Ch. 7 Production Analysis (Part II)
Slide
1
This chapter is split into two parts to make it a bit
easier to digest. This is part II which covers
production in the long run and production using
multiple inputs.
Ch. 7: Production Analysis, Part II
Eco 2252 Microeconomics
Slide
12
Chapter 22: Production Costs
Decision Time Frames
Dr. Wendy Bailey
There are two primary time frames economists
consider when examining production, cost, and profit
relationships: the short run and the long run.
The firm m
MBA 6651: Review Questions for Chapter 7- Long Run
Dr. Wendy Bailey
1. Suppose a particular firm exhibits constant returns to scale as it increases its output over any
reasonable range. If it increases all its inputs by 10%, its:
a. total cost will increa
MBA 6651: Week 3 Solutions
P5.1
SOLUTION
A. True. The effect of a $1 change in price is constant, but the elasticity of demand will vary
along a linear demand curve.
B. False. In practice, the forces of supply and demand tend to simultaneously, rather tha