Lagrange Multiplier Supplement
First read Lecture Module on optimization focusing on learning by doing examples 2.2
and 2.3 and the discussions in between.
Now consider the following additional example.
Suppose a firm produces two products x and y. The pr
Production and Cost
The calculation of cost is essential for any firm that needs to maximize profit. But much of the cost
of any firm is dependent on production. Thus in order to calculate cost a firm needs to have a good
idea about its production process
How to use Excel Solver to determine optimal solutions
In managerial economics you will be required to carry out optimizing exercises, such as
maximizing profit, minimizing cost etc. You will have to use calculus based optimizing
tools for such analysis.
Market Structure III:
Oligopoly
Oligopoly is a market structure where few firms produce and sell identical or
differentiated products.
To measure the degree of market concentration-to the extent a few firms can control
the marketwe use two measures: Four-
Module 2
Marginal Analysis and a Review of Optimization Techniques
Since managers are supposed to maximize profit of the firms that they manage, we need to develop
an analytical framework that can maximize and minimize different types of functions and dev
Market Structure II:
Monopoly
Monopoly: A single firm sells a product or a service for which there is no close substitute.
Sources of Monopoly Power: Where do monopolies come from?
To have a monopoly, barriers to entering the market must be so high that n
Marginal Analysis and a Review of Optimization Techniques
Since managers are supposed to maximize profit of the firms that they manage, we need to develop
an analytical framework that can maximize and minimize different types of functions and develop the
Managerial Economics
Show and explain all calculations. Provide detailed economic reasoning. The answers must
be submitted in WORD. Excel is to be used only for the Solver problem 1(c). No scan of
handwritten answers will be accepted.
1.
The Taxpayer Assi
Show and explain all calculations. Provide detailed economic reasoning. The answers
must be submitted in WORD or PDF. No scan of handwritten answers will be accepted.
1.
A competitive firms short run total cost function is given by
TC q3 16q2 100q 120
(a)
Managerial Economics assignment
Show and explain all calculations. Provide detailed economic reasoning. The answers
must be submitted in WORD. Excel is to be used only for problems 2 and 3 below. No
scan of handwritten answers will be accepted.
1. Perloff