Managerial Economics Essay - 5339 Words

Managerial Economics: A Problem-Solving Approach 2nd Edition End-of-Chapter Questions and Answers Table of Contents Chapters 1 and 2 - Introduction and The One Lesson of Business 5 Multiple Choice Questions 5 Multiple Choice Key 5 Short Answer Questions 6 Short Answer Key 6 Chapter 3 - Benefits, Costs, and Decisions 8 Multiple Choice Questions 8 Multiple Choice Key 8 Short Answer Questions 9 Short Answer Key 10 Chapter 4 - Extent (How Much) Decisions 11 Multiple Choice Questions 11 Multiple Choice Key 12 Short Answer Questions 12 Short Answer Key 13 Chapter 5 - Investment Decisions: Look Ahead and Reason Back 15 Multiple Choice Questions 15 Multiple Choice Key 15†¦show more content†¦When are parties likely to engage in transactions? a) If they both gain from the transaction b) If the sale price is above the seller’s value and below the buyer’s value c) When the total gains from trade are greater than zero d) All of the above 4. The existence of underemployed assets: a) is inefficient because not all assets are being put to their highest use b) implies the potential for money-making opportunities c) provides the opportunity for wealth-creating transactions d) All of the above 5. In a transaction for a good valued at $100,000 by a buyer and $95,000 by a seller, what amount of tax would result in an unconsummated transaction? a) Any tax amount would result in an unconsummated transaction b) A tax of $1,500 c) A tax of $5,500 d) It depends on how much the parties are willing to pay (and accept) for the good Multiple Choice Key 1. b 2. a 3. d 4. d 5. c Short Answer Questions Property Rights Why are property rights so important in creating wealth? Goal Alignment at a Small Manufacturing Company The owners of a small manufacturing company have hired a manager to run the company with the expectation that he will buy the company after five years.Show MoreRelatedManagerial Economics12384 Words   |  50 Pages|Managerial Economics | | | |UNIT -I | | | |[Pick the date] Read MoreManagerial Questions On Managerial Economics1736 Words   |  7 Pages MANAGERIAL ECONOMICS MANDIP SINGH SETHI K1300050 TABLE OF CONTENTS INTRODUCTION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 TYPES OF DISECONOMIES†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.5 DECENTRALIZATION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 CONCLUSION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..7 REFERENCE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.8 What are managerial diseconomies of scale and what, if anything, can be done about this phenomenon? DecreasingRead MoreManagerial Economics1517 Words   |  7 Pagestickets. Rachel Green, manager for the Sherman Oaks office, has been asked to recommend an appropriate level of advertising. In thinking about this problem, Green noted its resemblance to the optimal resource employment problem studied in a managerial economics course. The advertising/sales relation could be thought of as a production function, with advertising as an input and sales as the output. The problem is to determine the profit-maximizing level of employment for the input, advertising, inRead MoreManagerial Economics4591 Words   |  19 PagesMB0042 - Managerial Economics ASSIGNMENT SET I: Ans.1. The price elasticity of demand is not the same for all commodities. It may be or low depending upon number of factors. The factors which influence price elasticity of demand, in brief, are as under:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (i) Nature   of Commodities. In developing countries of the world, the per capital income of the people is generally low. They spend a greater amount of their income on the purchaseRead MoreManagerial Economics1932 Words   |  8 PagesMBA 5600 Managerial Economics Assignment #1 1. What impact will the prospect of deprivatization have on investment by managers of privatized firms? The impact will be: - Loosing corporate focus; - Missing planned CEO turnover; - Affecting planned managerial objects and strategic efficiency Obviously, normal managers invest in long-term projects, products and services, deprivatization may come up with a different strategy that not aligned with corporate goals and its profit will probablyRead MoreManagerial Economics2909 Words   |  12 PagesSEMESTER 2014 MANAGERIAL ECONOMICS – BMME5103 ASSIGNMENT (60%) Name: NGUYá »â€žN THá »Å  MINH HIá »â‚¬N Class: MBAOUM0514-K14A Question 1 a. What is (are) the main difference(s) between a monopolistically competitive market and a monopoly market? Their characteristics are different: |Monopolistically competitive market |Monopoly market | |Large number of small firms: Read MoreManagerial Economics Assignment952 Words   |  4 PagesMS- 09: MANAGERIAL ECONOMICS ASSIGNMENT Course Code : MS- 09 Course Title : Managerial Economics Assignment Code : 9/TMA/SEM-II/2010 Coverage : All Blocks Attempt All the Questions. â€Å"A close relationship between management and economics has led to the development of managerial economics.† Explain this statement. BOOK NO 1 PAGE NO. 7 Managerial Economics consists of the use of economic modes of thought to analyse business situation Spencer and Siegelman haveRead MoreManagerial Economics ( Bus529ah1 )1154 Words   |  5 Pages Managerial Economics (BUS529AH1) Final Exam Question 1. (a). Marginal Revenue (MR) is the adjustment altogether income because of a unit change in amount. So also Marginal cost (MC) is the additional cost of producing a unit. These two ideas are extremely helpful in ideal designation of assets. Assets will mean all variables of creation utilized as a partRead MoreEssay on Managerial Economics679 Words   |  3 PagesGus Bonilla MBA 217 Managerial Economics Individual Assignment 2) A firm’s product sells for $2 per unit in a highly competitive market. The firm produces output using capital (which it rents at $75 per hour) and labor (which is paid a wage of $15 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow. K | L | O | MPK | APK | APL | VMPK | 0 | 20 | 0 | - | - | - | - | 1 | 20 | 50 | 50 | 50Read MoreManagerial Economics and Globalization997 Words   |  4 PagesECO 550: Managerial Economics and Globalization Assignment 3 Instructor: Dr. A. A. Boakye Due By: 08/08/2011 Candidate’s Name-Andre Stevenson INSTRUCTIONS: Answer ALL the questions in PART I and PART II Part 1 (40 points) 1. The WXY Corporation has fixed costs of $50. Its total variable costs (TVC) vary with output as shown in the following table. Refer to the table. The average total cost of 4 units of output is A. $27.50 B. $40.00 C. $52.50 D. $210.00 2

The Disparity During The Performance Of Tests - 1035 Words

Over the years, there has been a great deal of concern on the performance of certain groups of people on tests that are said to be standardized. The result has been under-representation of some of these groups due to the differences in performance, a pattern that has persisted over time. Some scholars argue that these differences are due to cultural differences, while others point to cultural deficiencies and deprivation as possible explanations. However, whichever way they look at it, it is obvious that tests are culturally biased; they are unfair and discriminate against minority groups. I will explore this view further in this paper. There can only be two reasons for the disparity witnessed in the performance of tests: either people from some cultural groups have different capabilities or some cultural groups face greater barriers than others in educational achievement. I agree with the latter. Culture and cultural content are intertwined into various aspects such as language and as a result it would be impossible to have cultural-free testing. Moss (2013) is of the view that high scores in standardized tests require conformity or awareness of the main culture, and minors were unlikely to have knowledge of such information. Bias in these tests could be intentional, with the purpose of excluding a given group using assumptions that concepts that are familiar in one culture are familiar to another. Ronald Flaugher in a report authored in 1970 for the Educational TestingShow MoreRelatedIq Test Strengths and Weaknesses726 Words   |  3 PagesIQ testing is the ability to find out if a person has the aptitude to lea rn. IQ test have also been used to admit people into prestigious organizations and to put children in special education programs. IQ testing also further breaks down peoples strengths in specific areas such as math, music, science and language to name a few. 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In the American society,Read MoreThe Effects Of Listening On Different Types Of Music1026 Words   |  5 Pagesinvolves 15 year old students listening to music while taking their exam. The researchers found out that music does not have a huge impact on student’s performance (Hallam, Price, Katsarou, 2002). In contrast, there is also one study done by Fogelson in 1973 which stated there are positive effect of music while studying on children’s exam performance (Bloor, 2009). Therefore, Hallam suggested that early studies are done poorly and not set up in a practical framework, this is why the results of theRead MoreI Attended View Park Preparatory Charter High School Essay1587 Words   |  7 PagesAmerican student population. I could not have asked for a more supportive community. Similar to all public schools in California we were required to take CST’s which are California Standards Tests. 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Additionally, It would be right that there is difference in the syntactic principles of monolingual speakers; however, it can be said that the concept which

Controversial Role of Marine Protected Areas in Fisheries Management free essay sample

Marine protected areas (MPA) refer to the zones in which human activity has been placed under some restrictions for protection and restoration of the natural environment, its surrounding waters and the occupant ecosystems, and any cultural or historical resources that may require preservation or management. They play a dominant role in protecting marine biodiversity, ecosystem function and sustaining healthy coastal communities. MPA is relevant to biodiversity and scale, legal and compliance, and socio-culture (IUCN amp; UNEP-WCMC, 2010). It is a site-scale unit that is essential for conservation of marine biodiversity and maintenance of productivity of oceans. Also, the protection of MPA is integrated into various policies and environmental safeguards of international financial institutions. Besides, MPAs are recognized as traditional practices, cultural values, rights and involvement of local/indigenous communities in protection, use and management. This essay focuses on controversy surrounding MPAs. It discusses the direct benefits of marine protected areas, followed by the reasons why commercial and recreational fishers are against the designation of MPAs. We will write a custom essay sample on Controversial Role of Marine Protected Areas in Fisheries Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Last, it proceeds with a personal judgement on the role and relevance of marine reserves with the case of Phoenix Islands Protected Area. Section 2 Marine protected areas have brought a number of direct benefits in terms of biological diversity, fisheries, science, recreation and tourism, and education. * Biological diversity MPA mitigate or even avoid risks of diversity loss by providing refuges for species and protects their habitats that support their livelihood without human disturbance. It also facilitates the protection of unique, endemic, rare, and threatened species over a fragmented habitat (Fisheries and Oceans Canada 2011). * Fisheries MPAs have improved fish catch and led to stable catch levels. The species are able to spawn or to produce eggs and grow to adults in ‘no-take’ reserves. Also, increasing abundance moves to neighboring areas resulting from the spillover effect. The migration contributes to productive stocks adjacent to marine protected areas. * Science MPAs have created undisturbed locations free from exploited uses for scientific studies with enormous research potential. Fishery biologists believe that protected zones can be used as controls to monitor and study the recovery of fish populations (Sanchirico 2000). * Recreation amp; tourism Well managed marine protected areas have attracted thousands of visitors to view abundant marine life from observatories, with glass-bottomed boats, by snorkeling or scuba diving (Kenchington, Ward amp; Hegerl, 2003). The establishment of marine reserves opens new opportunities for local economy as tourist attractions. * Education The protected zones offer people opportunities to observe undisturbed marine species. They pass on the values of MPAs to the community with understanding and demand for sustainable management of their marine environments (Kenchington, Ward amp; Hegerl, 2003). Section 3 Marine protected areas are used as a tool for fisheries management. These areas have brought both benefits and costs to fisheries management. On one hand, the closed areas offer a hedge against management errors by improving the long term management of fisheries. On the other hand, they raise management costs of additional monitoring and enforcement, or even utilization of new technology. However, there remain some management uncertainties. The long run success of MPAs is uncertain in controlling effort because fishers internalize the social cost of their activities and concentration of fishing effort moves to unprotected areas. Moreover, the openness of marine environments and the susceptibility to broad oceanographic shocks make the protected zones likely to be responsive to external factors (Sanchirico 2000). Lack of enforcement and monitoring of these areas will also call into doubt that they are effective hedges. Additionally, the overall impact is unclear with few empirical results on the protected areas and unprotected. Because of uncertain fisheries management, commercial and recreational fishers often do not support the designation of marine protected areas. For one reason, fishers are sometimes displaced from their traditional fishing grounds to the remaining non-protected areas. The congestion effect generates conflict between users of the resource affecting both the displaced trawler and the fixed-gear fishermen. Also, displaced fishers have to spend additional time and effort learning about stock concentrations and oceanographic conditions that exist in the remaining areas (Sanchirico, Cochran, amp; Emerson 2002). More importantly, the designation forces fishermen to venture out to more distant waters leading to potential occupational risks. For another reason, transport costs and capital costs are increased. More fuel and time are spent on searching fish, and equipment and devices should be purchased. Section 4 The Phoenix Islands Protected Area (PIPA) was established in 2008, located in the Republic of Kiribati (Wikipedia 2013). It is the largest marine protected area (MPA) in the Pacific Ocean with an area of 408,250 km2. PIPA offers natural habitat for both marine and terrestrial biodiversity, especially for coral reefs and green turtles. It has protected the indigenous natural heritage from human disturbance as well as restored the islands for terrestrial species. Marine protected areas contribute to maintenance of biological diversity, healthy ecosystem and the promising future for the coming generations. These areas are beneficial beyond fisheries and marine ecosystem. They support scientific research, serve as tourist destinations with rising incomes for the local and educate people with their values. The protected zones provide both natural and cultural values. Furthermore, the ocean is correlated with the land and the air. MPAs affect the land and the air indirectly but significantly because the three elements are in the natural cycle. Thus, only with well management of the areas will they bring the most benefits to the humans to the great extent. Section 5 1. Fisheries and Oceans Canada 2011, Government of Canada, viewed 16 May 2013, lt; http://www. dfo-mpo. gc. ca/oceans/publications/dmpaf-eczpm/framework-cadre2011-eng. asp#c7gt;. 2. Kenchington, R, Ward, T amp; Hegerl, E 2003, Commonwealth of Australia, viewed 16 May 2013, lt; http://www. environment. gov. au/coasts/mpa/publications/pubs/benefits-mpas. dfgt;. 3. IUCN amp; UNEP-WCMC 2010, UNEP amp; WCMC, viewed 16 May 2013, lt; http://www. biodiversitya-z. org/areas/46#topgt;. 4. Sanchirico, JN 2000, Resources for the Future, viewed 16 May 2013, lt; http://www. rff. org/Documents/RFF-DP-00-23-REV. pdfgt;. 5. Sanchirico, JN, Cochran, KA amp; Emerson, PM 2002, Resources for the Future, viewed 17 May 2013, lt; http://www. cbd. int/doc/case-studies/inc/c s-inc-rf-04-en. pdfgt;. 6. Wikipedia 2013, Wikimedia Foundation, Inc. , viewed 17 May 2013, lt;http://en. wikipedia. org/wiki/Phoenix_Islands_Protected_Area#Natural_heritagegt;.

Ryanair - the Future Impact of Its Macro Environment free essay sample

The global recession affected the entire world economy, as well as the aircraft industry. But low-cost travel does not follow economic trends. Ryanair is planning to buy 50 new planes. Moreover, Michael O’Leary aims to increase passenger numbers from 75 to 85 million over the next two years. This means that discount airlines, including Ryanair, do well during recession. paragraph 14,p. 13) Consumers play an important role in the airline industry. Because of the recession â€Å"only low-cost airlines have posted much of a profit or done expansion on routes†. (paragraph 15,p. 14). Low prices alone do not fully explain their success, flight availability is more important for consumers. A frequent traveler says: â€Å"For a lot of us, the shift toward the low-cost carriers is not about price†. (paragraph 15,p. 14) The shift in consumer behavior in the last decade brought benefits to the low-cost airline companies. The macro environment has a big impact on the future development of Ryanair, but not necessarily in a negative way. We will write a custom essay sample on Ryanair the Future Impact of Its Macro Environment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Although the current economic situation is not a favorable environment for the aircraft industry, due to the increase in fuel prices, the low-cost companies do well. Comac, the technological ambition for China will bring the benefit of cutting costs for Ryanair and the shift in consumer behavior towards the low-cost companies will increase the number of their customers. The environment is favorable for Ryanair, a booming business, with new flights landing at new airports.