Chapter 5:
THEORY OF CONSUMER BEHAVIOR
Multiple Choice
1
A utility function
a.
shows the relation between prices and a consumer's utility.
b.
shows the relation between income and a consumer's utility.
c.
shows the relation between the amount of goods con
Chapter 1: MANAGERS, PROFITS, AND MARKETS
Multiple Choice
1
Economic profit
a.
is a theoretical measure of a firms performance and has little value in real world
decision making.
b.
can be calculated by subtracting implicit costs of using owner-supplied r
Chapter 4:
BASIC ESTIMATION TECHNIQUES
Multiple Choice
1
In a linear regression equation of the form Y = a + bX, the slope parameter b shows
a. X / Y.
b. Y / X.
c. Y / b.
d. X / b.
e. none of the above
2
In a regression equation, the _ captures the effect
Managerial
ManagerialEconomics
Chapter 3
Marginal Analysis for Optimal
Decision Making
Dr. Chens notes:
This chapter summarizes the marginal analysis for decision making in Microeconomics.
There are three main decisions:
Profit-maximization (for firms):
Chapter 3 Class Assignment Solutions for 3.11 and 3.16
3.11
Interpreting Relations between Cash Flows from Operating, Investing, and
Financing Activities. Firm A is FedEx and Firm B is Kellogg. The two firms have
similar amounts of net income. Firm A has
CHAPTER 1
1-8
Effect of Industry Economics on Balance Sheet. Intel faces the greatest risk of
technological change for its products among the three firms. Although the
manufacture of semi-conductors is capital intensive, Intel does not add financial risk
Dr. C. Chen
ECO 3315 Managerial Economics
Homework 1 Answer
Q1: CH 1 Applied Problem 1 on textbook pp. 27. (15%)
a.
b.
c.
d.
Total explicit cost = $793,000 (= 555,000 + 45,000 + 28,000 + 165,000)
Total implicit cost = $190,000 (= 175,000 + 0.15 100,000)
T
Chapter 2: DEMAND, SUPPLY, AND MARKET EQUILIBRIUM
Multiple Choice
1
The market demand curve for a given good shifts when there is a change in any of the
following factors EXCEPT
a.
the price of the good.
b.
the level of consumers' income.
c.
the prices of
Chapter 3: MARGINAL ANALYSIS FOR OPTIMAL DECISIONS
Multiple Choice
1
The function a decision maker seeks to maximize or minimize is the _ function.
a.
optimal
b.
decision-making
c.
objective
d.
marginal
e.
none of the above
2
For a constrained minimizatio
Chapter 6: ELASTICITY AND DEMAND
Multiple Choice
1
The Interior Department recently announced that it will increase the entrance fees at
Yellowstone National Park in order to increase park revenues. The Interior Department must
believe that
a.
park goers
Chapter 7: DEMAND ESTIMATION AND FORECASTING
Multiple Choice
1
Demand equations derived from actual market data are
a.
empirical demand functions.
b.
never estimated using consumer interviews.
c.
generally estimated using regression analysis.
d.
both a an
Managerial
ManagerialEconomics
Chapter 1
Managers, Profits, and Markets
Dr. Chens notes:
In this chapter, please pay more attention on the following topics:
Cost Definition (Text pp. 6~7)
Economic Profit vs. Accounting Profit (Text pp. 10~12)
Value of
Managerial
ManagerialEconomics
Chapter 2
Demand, Supply, & Market
Equilibrium
Dr. Chens notes:
In this chapter, we will review Economics 101. All topics in this chapter are fundamental
and important. The following demand and supply functions will help you
Managerial
ManagerialEconomics
Chapter 4
Basic Estimation Techniques
Dr. Chens notes:
This chapter reviews the fundamental technique of inferential statistics: regression. We will
start from the simple linear regression to the log-linear (exponential) re
Managerial
ManagerialEconomics
Chapter 5
Theory of Consumer Behavior
Dr. Chens notes:
We have already studied the important concepts related to consumption theory in the
previous chapters of marginal analysis and demand. In this chapter, pay attention on
Managerial
ManagerialEconomics
Chapter 6
Elasticity and Demand
Dr. Chens notes:
This is the most important chapter for demand estimation. Why do we study elasticity?
Elasticity is a measure of responsiveness or sensitivity to a particular variables chang
Managerial
ManagerialEconomics
Chapter 7
Demand Estimation &
Forecasting
Dr. Chens notes:
This chapter combines the techniques in Ch 4 and the concepts in Ch 6 to estimate demand
function. Time-series forecasting with dummy variables is also introduced.
Install ToolPak (Data Analysis)
(1) For Excel 97-2003 Workbook
Open EXCELSelect the Tools menuChoose Add-InsSelect Analysis ToolPak
then OK
Go back to Data to see whether Data Analysis is shown under Tools. If so, you have
installed the required software