Homework 1
1a. What are the total explicit costs in 2010?
Revenues Net Income = 970,000 177,000 = $793,000
What are the total implicit costs in 2010?
Salary + Return earned on capital = 175,000 + (15% * 100,000) = $190,000
What are the total economic cost
Homework 3
Q1: CH 8 (10%)
At a management luncheon, two managers were overheard arguing about the following
statement: A manager should never hire another worker if the new person causes
diminishing returns. Is this statement correct? If so, why? If not,
Homework 2
1.
a. What sign does the marketing director expect a, b, and c to have?
The director would expect the advertising to have a positive effect from the advertising efforts
and the competitors advertising to have a negative effect. Following the ad
ECO 3315 Managerial Economics
Homework 4
The homework covers Ch 11~13. You may discuss the questions with classmates.
However, copying answer from others will violate ACADEMIC HONESTY policy to
cause a failing grade. If any two students turn in exactly th
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.935544
R Square
0.875243
Adjusted R Square
0.866001
Standard Error
0.154565
Observations
30
ANOVA
df
Regression
Residual
Total
Intercept
X Variable 1
X Variable 2
SS
MS
F Significance F
2 4.525311 2.262655
Cobb-Douglas Production Functions: This has
been widely used in empiricism
ECO 3315 Managerial Economics
Theory and Estimation of Production
Long-run and Cobb-Douglas Production Function
Q = A K L is a Cobb-Douglas Production Function
IMPLIES:
Can be IRS
Lecture
Estimating Production Functions
Unit Objectives:
After reading this unit you will understand the following:
1.
Estimating a Production Function using EXCEL
Applying statistical tests to check the validity of economic principles
The workings of a C
Chapter 6: PRODUCTION
Production and cost are closely linked, since more (less) efficient production
decreases (increases) a firm's cost of production. Production goal: Produce a
given output (QS) at the minimum cost, i.e. maximize output and minimize inp