Short Run Costs
Part 2
The Costs of Production
There
are many different types of costs.
Invariably, firms believe costs are too high
and try to lower them.
Fixed Costs, Variable Costs,
and Total Costs
Fixed
costs are those that are spent and
cannot be
CHAPTER 1
ECONOMIC MODELS
Economic modeling is at the heart of economic theory. Modeling provides a logical,
abstract template to help organize the analyst's thoughts. The model helps the economist logically
isolate and sort out complicated chains of caus
Price Elasticity, Total Revenue
and Demand Curves
Elasticity Calculation
Q
avg. Q
P
avg. P
Q2-Q1
Q2+Q1
P2-P1
P2+P1
Elasticity and Slope
Elasticity
Q
Q
avg. Q = _ *
P
P
avg. P
Slope
P
Q
avg. P
_
avg. Q
Drawing Demand Curves
On one diagram, at
the same pr
The Use of Price Elasticity of
Demand
Why Elasticity matters?
Elasticity, Total Revenue, and
Demand
The elasticity of demand tells suppliers
how their total revenue will change if their
price changes.
Total revenue equals total quantity sold
multiplied
COURSE SYLLABUS
Course Title
: Managerial Economics
Credit Hours
: 3 Hours
Prerequisites
: Microeconomics
Professor Name : Dr. Fakhry El-Fiky
Email Address : f_elfiky@yahoo.com
Text Book
: Paul G. Keat, And Philip K.Y. Young,
Managerial Economics :Economi