SUMMARY OUTPUT
Regression Statistics
Multiple R
0.5651253928
R Square
0.3193667096
Adjusted R Square
0.2588659726
Standard Error
20.385590545
Observations
50
ANOVA
df
Regression
Residual
Total
Intercept
ChuckP
ChickP
DispInc
Time
SS
MS
4 8774.766415861 21

Lecture 4:
The Production Process (BP, Ch.
5)
Bus. Mgmt. 737
Business Strategy and Economics
Steve Trick
Chapter Outline
The production function(s)
Short-run versus long-run decisions
Measures of productivity
Managers role in production process
Produ

Differential Calculus Techniques in Management
A function with one decision variable, X,
can be written as Y = f(X)
The marginal value of Y, with a small
increase of X, is My = Y/X
Marginal = Slope = Derivative
The slope of line C-D
is Y/X
The margina

Lecture 1:
Behavioral Economics & The
Psychology of Price (BG)
Bus. Mgmt. 737
Business Strategy and Economics
Steve Trick
Behavioral Economic Traps
Belsky & Gilovich, esp. Chapters 1, 4, 5, & 6
Behavioral Finance and Behavioral
Economics
both begin with

PROBLEM:
Find the own price elasticity, the income
elasticity, and the cross-price elasticity at
P=10, Y=20, and PB=9, if the demand
function were estimated to be:
QD = 90 - 8P + 2Y + 2PB
Is the demand for this product elastic or
inelastic? Is it a luxury

Lecture 3:
Demand Estimation
& The
Nature of Industry (BP, Ch. 3 & 7)
Bus. Mgmt. 737
Business Strategy and Economics
Steve Trick
Regression Analysis
How does one obtain information on the
demand function?
Published studies.
Hire consultant.
Regression

Optimal Use of Labor
Suppose
2
Q 100 L 3.5L
Suppose output can be sold for $15/unit, and labor
can be purchased at $30/unit.
Determine the marginal revenue product function
(MRP = MP X P).
Determine the marginal factor cost function (MFC).
Determine

Cost Functions &
Lecture 5:
Perfect Competition
(BP, Ch. 5 & 8)
Bus. Mgmt. 737
Business Strategy and Economics
Steve Trick
The Cost Function
5-2
Short-Run Costs in Action
Total costs
Variable costs
Fixed costs
0
Output
5-3
Average and Marginal Costs
5