Managerial Economics (EBE 2043)
1. Why is the market demand curve usually less elastic than demand curve faced by
the individual firms in that market?
2. The demand for housing is often describe as being highly cyclical and very sensitive
THE CONCEPT OF RISK (RISK AND
There are 2 parts of decision making:
1. The decision making under certainty.
2. The decision making under uncertainty.
In (1), all the relevant information is assumed
to be known with certainty and all relevant
Risk vs. Uncertainty
Must make a decision for which the outcome is
not known with certainty
Can list all possible outcomes & assign
probabilities to the outcomes
Cannot list all possible outcomes
Cannot assign probabilities to the o
1.A local scuba diving company, SCUBA, Inc., has estimated its tank filling costs as a
function of quantity to be:
Based on these data, make a table that shows the total variable cost, total fixed cost
EBQ 1063 MATHEMATICS FOR ECONOMICS
Answer ALL the questions. Write down your answers clearly and provide detail
workflows on how you obtain the answers, where necessary.
1. Sarah plans to deposit RM1000 and makes no withdrawals for 2 years. She