DEMAND FORECASTING (PART II)
|
|
- Catherine Kelly
- 6 years ago
- Views:
Transcription
1 BEC 30325: MANAGERIAL ECONOMICS Session 06 DEMAND FORECASTING (PART II) Dr. Sumudu Perera
2 Session Outline 2 Smoothing Techniques- Example- Moving Average Limitations of Qualitative Demand Forecasting Limitations of Quantitative Demand Forecasting Dr.Sumudu Perera 19/10/2017
3 Example- Moving Average 3 The following table shows the actual sales of shoes of Boots Inc. from February 2016 to August 2016 a) Compute 3 month moving average forecasts b) Compute 5 month moving average forecasts Time (t) Month Sales (1000) 1 Feb 19 2 Mar 18 3 Apr 15 4 May 20 5 Jun 18 6 Jul 22 7 Aug 20 Dr.Sumudu Perera 19/10/2017
4 Limitations of Qualitative Forecasting Techniques 4 Provides estimates that are dependent on the market skills of experts and their experience. These skills differ from individual to individual. Involves subjective judgment of the assessor, which may lead to over or under-estimation. Depends on data provided by sales representatives who may have inadequate information about the market. Ignores factors, such as change in Gross National Product, availability of credit, and future prospects of the industry, which may prove helpful in demand forecasting. Dr.Sumudu Perera Most of the qualitative methods are expensive 19/10/2017
5 Limitations of Quantitative Forecasting Techniques 5 There are many assumptions used in these statistical and mathematical models Assumes that the past rate of changes in variables will remain same in future too, which is not applicable in the practical situations. Some techniques are quite complicated, managers may not be able to easily understand Dr.Sumudu Perera 19/10/2017
6 BEC 30325: MANAGERIAL ECONOMICS Session 07 APPLICATION OF THEORY OF PRODUCTION AND COST ANALYSIS (PART I) Dr. Sumudu Perera
7 Session Outline 7 Introduction The Production Function with one variable input Optimal usage of the variable input The production with two variable inputs Optimal combination of two inputs Dr.Sumudu Perera 19/10/2017
8 Theory of Production Production - a process through which factor inputs are made into output that directly or indirectly satisfy consumer demand PRODUCTION SHORT RUN: AT LEAST ONE FIXED FACTOR & GIVEN TECHNOLOGY LONG RUN: ALL FACTOR INPUTS VARIABLE BUT NOT technology VERY LONG RUN: ALL FACTOR INPUTS AS WELL AS TECHNOLOGY VARY
9 Short run: Production with one variable input. Q f ( K, L) maximum rate output obtainable from a given combination of fixed capital and labour input Total Product Marginal Product Average Product Production or Output Elasticity TP, Q = f(l) MP L = TP L AP L = TP L E L = MP L AP L
10 Output elasticity It represents the change in the quantity produced as the change in with respect to the inputs E o = % change in output (ΔQ%) % change in inputs (ΔX%) = ΔQ x X ΔX Q or Decision criteria: when E o > 1 it reflects an increasing returns to scale, where E o < 1 it reflects a decreasing returns to scale and E o = 1 constant returns to scale.
11 Production Function with One Variable Input L Q MPL APL EL
12 Short Run Production Function
13 Short Run: Optimal Use of the Variable Input Marginal Revenue Product of Labor Marginal Resource Cost of Labor Optimal Use of Labor MRP L = (MP L )(MR) MRC L = TC L MRP L = MRC L
14 Optimal Use of the Variable Input
15 Optimal Use of the Variable Input Use of Labor is Optimal When L = 3.50 L MP L MR = P MRP L MRC L $10 $40 $
16 Exercise : Optimal Variable Input Use Labour Units Total Product Marginal Product Marginal Revenue Prodcut Marginal Resource Cost Fill in the blanks Assume that the price of the product is Rs. 12 and wage cost is Rs. 360
17 Long run: Production with Two variable inputs 17 Q f ( K, L) Maximum rate output obtainable from a given combination of capital and labour input which are variable A firm faces with the problem of efficient allocation of resource in production, i.e., produce output that maximizes profits. Isoquants and Isocost Dr.Sumudu Perera 19/10/2017
18 Long Run: Production With Two Variable Inputs Firms will only use combinations of two inputs that are in the economic region of production, which is defined by the portion of each iso-quant that is negatively sloped.
19 Production Function with two inputs Q = f(l, K) K Q L
20 Production with two variable Inputs Isoquants Isocost Ridge lines MRTS and long run equilibrium Production expansion path
21 Production with two variable inputs Marginal Rate of Technical Substitution MRTS = -K/L = MP L /MP K
22 Production With Two Variable Inputs
23 Substitute and Complementary inputs Perfect Substitutes Perfect Complements
Theory of Production
Theory of Production Production Inputs: Labour, Capital Production: The Firm Outputs: Goods THE THEORY OF PRODUCTION Production theory forms the foundation for the theory of supply Managerial decision
More informationPlease recall how TP, MP and AP are plotted
Please recall how TP, MP and AP are plotted The Marginal Revenue Product (MRP) The increase in total revenue for every additional labor unit employed. Units of Labor TP MP Product Price TR MRP ( TR/ L)
More informationCost-minimizing input combinations. Rush October 2014
Cost-minimizing input combinations Rush October 2014 Today s objectives Review marginal revenue productivity and firm resource demand Look at the optimal combination of resources for the competitive firm
More informationTopic 3.1b Long-Run Labour Demand. Professor H.J. Schuetze Economics 370
Topic 3.1b Long-Run Labour Demand Professor H.J. Schuetze Economics 370 Long-Run Labour Demand In the long-run the firm can now vary both inputs and. Typically the firms production and employment decisions
More informationSCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME
All Rights Reserved No. of Pages - 07 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR I SEMESTER I INTAKE VIII (GROUP B) END SEMESTER
More informationIntroduction to Business (Managerial) Economics
Contents Unit 1 Introduction to Business (Managerial) Economics Meaning of Managerial Economics... 2 Definitions of Managerial Economics... 2 Features (Characteristics) of Managerial Economics... 5 Nature
More informationDEMAND FORECASTING (PART I)
BEC 30325: MANAGERIAL ECONOMICS Session 05 DEMAND FORECASTING (PART I) Dr. Sumudu Perera Session Outline 2 Forecasting Qualitative Forecasts Time -Series Analysis Trend projection Seasonal Variation Smoothing
More informationCHAPTER 11 The Demand for Factors of Production
Part Three: Microeconomics of Factor Markets CHAPTER The Demand for Factors of Production McGraw-Hill Ryerson Ltd. Slides prepared by Bruno Fullone, George Brown College In this chapter you will learn:.
More informationLabour Demand Lecturer: Dr. Priscilla T. Baffour
Lecture 3 Labour Demand Lecturer: Dr. Priscilla T. Baffour Determinants of Short Run Demand for Labour The wage rate: The wage rate is a very important determinant of labour demand. Thus the higher the
More informationDEMAND ESTIMATION (PART I)
BEC 30325: MANAGERIAL ECONOMICS Session 02 DEMAND ESTIMATION (PART I) Dr. Sumudu Perera Session Outline Definition of Demand Law of Demand Price Elasticity of Demand Elasticity and Total Revenue Income
More informationReview Notes for Chapter Optimal decision making by anyone Engage in an activity up to the point where the marginal benefit= marginal cost
Review Notes for Chapter 5 1. Optimal decision making by anyone Engage in an activity up to the point where the marginal benefit= marginal cost Sunk costs are costs which must be borne regardless of future
More informationINTRODUCTION TO MANAGERIAL ECONOMICS
BEC 30325: MANAGERIAL ECONOMICS Session 01 INTRODUCTION TO MANAGERIAL ECONOMICS Dr. Sumudu Perera Session Outline Nature and scope of Managerial Economics Goals and Constraints of business organizations
More informationDemand & Supply of Resources
Resource Markets 1 Demand & Supply of Resources Resource demand Firms demand resources As long as marginal revenue exceeds marginal cost To maximize profit Resource supply People supply resources To the
More informationContents. Concepts of Revenue I-13. About the authors I-5 Preface I-7 Syllabus I-9 Chapter-heads I-11
Contents About the authors I-5 Preface I-7 Syllabus I-9 Chapter-heads I-11 1 Concepts of Revenue 1.1 Introduction 1 1.2 Concepts of Revenue 2 1.3 Revenue curves under perfect competition 3 1.4 Revenue
More informationSTATE UNIVERSITY OF NEW YORK COLLEGE OF TECHNOLOGY CANTON, NEW YORK COURSE OUTLINE ECON 314- MANAGERIAL ECONOMICS. Prepared by: Karen Spellacy
STATE UNIVERSITY OF NEW YORK COLLEGE OF TECHNOLOGY CANTON, NEW YORK COURSE OUTLINE ECON 314- MANAGERIAL ECONOMICS Prepared by: Karen Spellacy Updated by Edouard Mafoua SCHOOL OF BUSINESS AND LIBERAL ARTS
More informationSCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME END SEMESTER EXAMINATION JULY 2016
All Rights Reserved No. of Pages - 08 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME END SEMESTER EAMINATION JULY 2016 BEC 30325 Managerial
More informationThe Behavior of Firms
Chapter 5 The Behavior of Firms This chapter focuses on how producers make decisions regarding supply. Individuals demand goods and services. Firms supply goods and services. An important assumption is
More informationFaculty of Economics, Thammasat University EE 211 Principles of Microeconomics (3 credits)
Faculty of Economics, Thammasat University EE 211 Principles of Microeconomics (3 credits) Semester 1/2014 ----------------------------------------------------------------------------------------------
More informationFaculty of Economics, Thammasat University EE 211 Principles of Microeconomics (3 credits)
Lecture Time: Lecture Venue: Instructor: Faculty of Economics, Thammasat University EE 211 Principles of Microeconomics (3 credits) Semester 1/2015 ----------------------------------------------------------------------------------------------
More informationMicroeconomics. Basic Information
Microeconomics Basic Information Title: Microeconomics Code: ECN101 Credit Hours: 3 C.H. Prerequisite(s): None Classification: Compulsory Faculty Core Course Description Microeconomics is a basic core
More informationB.V. Patel Institute of Business Management, Computer & Information Technology, Uka Tarsadia University : Managerial Economics
Unit-1 Introduction of Managerial Economics and Cost Analysis Answer the following. (1 mark) 1. Define Managerial Economics? 2. How does Managerial Economics help managers to become efficient and competent?
More informationMICRO EXAM REVIEW SHEET
MICRO EXAM REVIEW SHEET 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry 3. Natural Monopoly with Fair-Return
More informationContents. Introduction
Contents Chapter 1 Introduction Introduction to Economics... 1 Meaning of Economics... 1 Definitions of Economics... 2 Introduction to Economic Theory... 3 The Structure of Theories... 5 Importance of
More informationThe Theory of Production
The Theory of Production Production: the creation of any good or service that has economic value to either consumers or other producers. Production analysis focuses on the efficient use of inputs to create
More informationFoundations of Business Analysis and Strategy
k 11 i- f l I_J I I } I II j "J 1r%\ "J T. "u ' Foundations of Business Analysis and Strategy TENTH EDITION (hristopher R. Thomas University of South Florida Exide Professor of Sustainable Enterprise S.
More informationUNIT 4 PRACTICE EXAM
UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the
More informationUtility Theory and the Downward Sloping Demand Curve.
Tuesday Notes Utility Theory and the Downward Sloping Demand Curve. Five fundamentals of consumer choice 1. We make decisions purposefully and We are motivated and act based on rational self-interest.
More informationQuestion Paper Business Economics I (MB1B3): January 2009
Question Paper Business Economics I (MB1B3): January 2009 Answer all 78 questions. Marks are indicated against each question. 1. Which of the following is not responsible for an increase in demand for
More informationLast Name First Name ID#
Last Name First Name ID# ---Form A Prof. Harford Price Theory I Section 3, Spring 2003 Second Test, Form A 1. If prices don t all change at the same rate, the consumer price index that calculates what
More informationInput Demand: The Labor and Land Markets
Chapter 10 Input Demand: The Labor Prepared by: Fernando & Yvonn Quijano 2007 Prentice Hall Business Publishing Principles of Economics 8e by Case and Fair Input Demand: The Labor 1 2 10 Chapter Outline
More informationTWELFTH EDITION. University of South Florida. Texas A&M University Late Professor Emeritus. Mc Graw Hill Education
MANAGERIAL Foundations of Business Analysis and Strategy TWELFTH EDITION Christopher R. Thomas University of South Florida S. Charles Maurice Texas A&M University Late Professor Emeritus Mc Graw Hill Education
More informationManagerial Economics & Business Strategy. Final Exam Section 2 May 11 th 7:30 am-10:00 am HH 076
Managerial Economics & Business Strategy Final Exam Section 2 May 11 th 7:30 am-10:00 am HH 076 Grading Scale 5% - Attendance 8% - Homework (Drop the lowest grade) 7% - Quizzes (Drop the lowest grade)
More informationINTRODUCTION TO MANAGERIAL ECONOMICS
BEC 30325: MANAGERIAL ECONOMICS Session 01 INTRODUCTION TO MANAGERIAL ECONOMICS Dr. Sumudu Perera Session Outline Nature and scope of Managerial Economics Goals and Constraints of business organizations
More informationEconomic Analysis for Business and Strategic Decisions. The Fundamentals of Managerial Economics
Economic Analysis for Business and Strategic Decisions Chapter 1: The Fundamentals of Managerial Economics 1. Define the concept of time value of money. 2. Recognize the difference between value maximization
More informationUNIT II THEORY OF PRODUCTION AND COST ANALYSIS
UNIT II THEORY OF PRODUCTION AND COST ANALYSIS Production Function:- The production function expresses a functional relationship between physical inputs and physical outputs of a firm at any particular
More informationNAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Final Exam December 8, 2006
NAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Section I: Multiple Choice (4 points each) Identify the choice that best completes the statement or answers the question. 1. The slope
More informationApplication: the effect of immigration on domestic wages
LABOUR DEMAND Application: the effect of igration on domestic wages Case 1. Immigrants and nonigrants are perfect substitutes in production W S 0 S 1 Law of one price: all workers earn the same wage W
More informationEcon190 May 1, No baseball caps are allowed (turn it backwards if you have one on).
Heather Krull Final Exam Econ190 May 1, 2006 Name: Instructions: 1. Write your name above. 2. No baseball caps are allowed (turn it backwards if you have one on). 3. Write your answers in the space provided
More informationEcon 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1
Econ 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1 Chronological order of topics covered in class (to the best of my memory). Introduction to Microeconomics (Chapter 1) What is
More informationNotes on Profit Maximization
Notes on Profit Maximization Eric Doviak January 30, 2011 Brooklyn College, Microeconomics These notes are a supplement to a lecture that I will deliver in class. They contain the tables that I will use
More informationChapter 17: Labor Markets
Chapter 17: Labor Markets Econ 102: Introduction to Microeconomics 1 1.1 Goals of this class Goals of this class Learn how employment and wages are determined in equilibrium. Learn what can shift labor
More informationi. The profit maximizing output of firm B is smaller than the profit maximizing output of firm A.
Short Questions 1. A firm is currently producing output using units of labor and units of other materials. The isoquant that corresponds to output level and the firm s optimal input choices are given in
More informationChapter 4. Labour Demand. McGraw-Hill/Irwin Labor Economics, 4 th edition. Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 4 Labour Demand McGraw-Hill/Irwin Labor Economics, 4 th edition Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved. 4-2 Introduction Firms hire workers because consumers want to
More informationDURATION: 3 HOURS TOTAL MARKS: 100. External Examiner: MR MAG Darroch Internal Examiners: Dr E Wale and Prof GF Ortmann
DURATION: 3 HOURS TOTAL MARKS: 100 External Examiner: MR MAG Darroch Internal Examiners: Dr E Wale and Prof GF Ortmann NOTE: THIS PAPER CONSISTS OF 9 PAGES. PLEASE SEE THAT YOU HAVE THEM ALL. ANSWER SECTIONS
More information6. The law of diminishing marginal returns begins to take effect at labor input level: a. 0 b. X c. Y d. Z
Chapter 5 MULTIPLE-CHOICE QUESTIONS 1. The short run is defined as a period in which: a. the firm cannot change its output level b. all inputs are variable but technology is fixed c. input prices are fixed
More informationAP Microeconomics Review With Answers
AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show
More informationPROGRAMME: B.COM (FIRST YEAR) COURSE: BUSINESS ECONOMICS I PAPER: MICRO ECONOMICS-01
PROGRAMME: B.COM (FIRST YEAR) COURSE: BUSINESS ECONOMICS I PAPER: MICRO ECONOMICS-01 (Choice Based Credit System with Effect from the Academic Year 2018-19) 1. Name of the Programme: : B.COM 2. Paper Code
More informationModule 5. Production analysis. Introduction
Module 5 Production analysis Introduction This module moves from the decisions of utility-maximising households to examine the factors governing the behaviour of perfectly competitive profit-maximising
More informationChoose the one alternative that BEST completes the statement or answers the question.
CHAPTER 3 The Demand for Labor In addition to the multiple choice and quantitative problems listed here, you should answer review questions 1, 3, 5, and 7 and problems 1-4 at the end of chapter 3. Multiple-Choice
More informationFinal Term Examination Spring 2006 Time Allowed: 150 Minutes. Question No. 1 Marks :1. Question No.
www.vustuff.com WWW.VUTUBE.EDU.PK ECO402 Microeconomic s Final Term Examination Spring 2006 Time Allowed: 150 Minutes Question No. 1 Marks :1 Economies of scale and economies of scope are synonymous. Question
More informationPractice Exam 3: S201 Walker Fall with answers to MC
Practice Exam 3: S201 Walker Fall 2007 - with answers to MC Print Your Name: I. Multiple Choice (3 points each) 1. If marginal utility is falling then A. total utility must be falling. B. marginal utility
More informationCourse Information Introduction to Economics I (ECON 1001)
Course Information Introduction to Economics I (ECON 1001) Course Code ECON 1001 Course Title Course Discipline Introduction to Economics I Economics Units of Credit Three (3) Pre-requisites None Semester
More informationChapter 3. Labour Demand. Introduction. purchase a variety of goods and services.
Chapter 3 Labour Demand McGraw-Hill/Irwin Labor Economics, 4 th edition Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved. 4-2 Introduction Firms hire workers because consumers want to
More information1.3. Levels and Rates of Change Levels: example, wages and income versus Rates: example, inflation and growth Example: Box 1.3
1 Chapter 1 1.1. Scarcity, Choice, Opportunity Cost Definition of Economics: Resources versus Wants Wants: more and better unlimited Versus Needs: essential limited Versus Demand: ability to pay + want
More informationPractice Exam 3: S201 Walker Fall 2009
Practice Exam 3: S201 Walker Fall 2009 I. Multiple Choice (3 points each) 1. Which of the following statements about the short-run is false? A. The marginal product of labor may increase or decrease. B.
More informationMicro Economics M.A. Economics (Previous) External University of Karachi Micro-Economics
Micro Economics M.A. Economics (Previous) External University of Karachi Micro-Economics Annual Examination 1997 Time allowed: 3 hours Marks: 100 Maximum 1) Attempt any five questions. 2) All questions
More information****** 1. How is the demand for an input dependent upon the demand for an output? 2. Given a wage, how does a firm decide how many people to hire?
1 Chapter 4- Income distribution and factor pricing Syllabus-Input markets: demand for inputs; labour markets, land markets, profit maximisation condition in input markets, input demand curves, distribution
More informationLevel 1. Economics (ECO) If you can handle the following items from SS 4, you should be in good shape for the exam.
Level 1 SS4 Economics (ECO) Expect to see 24 questions that relate to ECO SS 4, SS 5 and SS 6 Only 8 questions from each study session! If you can handle the following items from SS 4, you should be in
More informationREDEEMER S UNIVERSITY
REDEEMER S UNIVERSITY Km 46/48 Lagos Ibadan Expressway, Redemption City, Ogun State COLLEGE OF MANAGEMENT SCIENCE DEPARTMENT OF ECONOMICS AND BUSINESS STUDIES COURSE CODE /TITLE ECO 202/Microeconomics
More informationWhat is Utility: Total utility & Marginal utility:
Economic Theory of Consumer Behavior * What is utility. * Define total utility and marginal utility.*** * State the law of diminishing marginal utility.**** * Define indifference curve and indifference
More informationCASE FAIR OSTER PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N. PEARSON 2014 Pearson Education, Inc. Publishing as Prentice Hall
PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER PEARSON Publishing as Prentice Hall Prepared by: Fernando Quijano w/shelly Tefft 2 of 23 Input Demand: The Labor and Land Markets
More informationSRI LANKA INSTITUTE OF ADVANCED TECHNOLOGICAL EDUCATION. (Established in the Ministry of Higher Education, vide in Act No.
Q1. Select the correct answer and Under line it (Total 16 Marks) 01. Economics is a science. Because, (a) Evidences are observable (b) Findings are measurable (c) Findings can be analyzed i a and b correct
More informationChapter 6. Firms and Production. Hard work never killed anybody, but why take a chance? Charlie McCarthy
Chapter 6 Firms and Production Hard work never killed anybody, but why take a chance? Charlie McCarthy Chapter 6 Outline 6.1 The Ownership and Management of Firms 6.2 Production 6.3 Short Run Production:
More information12-1 (4) EQ: What is Derived Demand? EQ: What is Marginal Physical Product? Factor Demand
E: What is a Factor Market? 12-1 (4) o far, when discussing markets, we have focused on the supply of and demand for products that consumers purchase and consume. However, there are also markets for the
More informationEco 685 Graphs, Tables, and Definitions
Eco 685 Graphs, Tables, and Definitions David L. Kelly 1 1 Department of Economics, University of Miami dkelly@miami.edu Fall, 2017 Introduction Introduction Managerial Economics Definition Definition
More informationContents EXPLORING ECONOMICS
Contents About the authors I-5 Preface to second edition I-7 Chapter-heads I-9 Syllabus : Choice Based Credit System (CBCS) I-19 1 EXPLORING ECONOMICS 1.1 Why study economics? 1 1.2 Meaning of economics
More informationECON Chapter 5 - Labour Economics. Maggie Jones
ECON 370 - Chapter 5 - Labour Economics Maggie Jones Demand for Labour in Competitive Labour Markets Demand for Labour in Competitive Labour Markets The principles that determine the demand for any factor
More informationProduction. Microéconomie, chapter 6. Solvay Business School Université Libre de Bruxelles
Production Microéconomie, chapter 6 1 List of subjets Production technology Production with a single input (labor) Isoquants Production with two inputs (labor and capital) Returns to scale 2 The production
More informationMarginal Cost. Average Cost 0 20 NA NA NA a) Is this a short run or long run information on cost? Why?
McPeak PPA 723 Exam 2 Name: All numbered questions are worth 2 points each, sub questions worth an equal share of these 2 points. 1) Complete the following table. Output Fixed Cost Total Cost Variable
More informationPreface. Chapter 1 Basic Tools Used in Understanding Microeconomics. 1.1 Economic Models
Preface Chapter 1 Basic Tools Used in Understanding Microeconomics 1.1 Economic Models 1.1.1 Positive and Normative Analysis 1.1.2 The Market Economy Model 1.1.3 Types of Economic Problems 1.2 Mathematics
More informationChapter 6 Read this chapter together with unit five in the study guide. Firms and Production
Chapter 6 Read this chapter together with unit five in the study guide Firms and Production Topics The Ownership and Management of Firms. Production. Short-Run Production: One Variable and One Fixed Input.
More informationUniversity of Toronto July 27, ECO 100Y L0201 INTRODUCTION TO ECONOMICS Midterm Test # 2
Department of Economics Prof. Gustavo Indart University of Toronto July 27, 2006 SOLUTION ECO 100Y L0201 INTRODUCTION TO ECONOMICS Midterm Test # 2 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1.
More informationAverage Cost 0 20 NA NA NA a) Is this a short run or long run information on cost? Why?
McPeak PPA 723 Exam 2 Name: All numbered questions are worth 2 points each, sub questions worth an equal share of these 2 points. 1) Complete the following table. Output Fixed Cost Total Cost Variable
More informationCIE Economics A-level
CIE Economics A-level Topic 3: Government Microeconomic Intervention c) Labour market forces and government intervention Notes Demand for and supply of labour The labour market is a factor market. The
More informationPractice EXAM 3 Spring Professor Walker - E201
Practice EXAM 3 Spring 2009 - Professor Walker - E201 1. The theory behind short run production costs can be narrowed to an assumption that MC is expected to initially fall, but rise at larger levels of
More informationECO 162: MICROECONOMICS
ECO 162: MICROECONOMICS PREPARED BY Dr. V.G.R. CHANDRAN Email: vgrchan@gmail.com Website: www.vgrchandran.com/default.html UNIVERSITI TEKNOLOGI MARA 0 P a g e TUTORIAL QUESTIONS ALL RIGHTS RESERVED 2010
More informationMANAGERIAL ECONOMICS WILEY A JOHN WILEY & SONS, INC., PUBLICATION. A Mathematical Approach
MANAGERIAL ECONOMICS A Mathematical Approach M. J. ALHABEEB L. JOE MOFFITT Isenberg School of Management University of Massachusetts Amherst, MA, USA WILEY A JOHN WILEY & SONS, INC., PUBLICATION PREFACE
More information= AFC + AVC = (FC + VC)
Chapter 13-14: Marginal Product, Costs, Revenue, and Profit Production Function The relationship between the quantity of inputs (workers) and quantity of outputs Total product (TP) is the total amount
More informationFactors of Prodution. Unit 3: The Nature and Function of Factor Markets
Factors of Prodution Unit 3: The Nature and Function of Factor Markets 4 Factors of Production Labor Capital Land Entrepreneurship Factor Markets Factors of production (labor, capital, and land) are paid
More informationCosts: Introduction. Costs 26/09/2017. Managerial Problem. Solution Approach. Take-away
Costs Costs: Introduction Managerial Problem Technology choice at home versus abroad: In western countries, firms use relatively capital-intensive technology. Will that same technology be cost minimizing
More informationThe Demand for Resources. Resource Pricing
The Demand for Resources Resource Pricing Firms demand resources Focus on labor Resource prices are important Money-income determination Cost minimization Resource allocation Policy issues LO - Resource
More informationThe Production Process: The Behavior of Profit-Maximizing Firms
Chapter 7 The Production Process: The Behavior of Profit-Maximizing Firms Prepared by: Fernando & Yvonn Quijano 2007 Prentice Hall Business Publishing Principles of Economics 8e by Case and Fair The Production
More informationChapter 12 outline The shift from consumers to producers
Chapter 12 outline The shift from consumers to producers Resource markets are markets in which business firms demand factors of production from household suppliers. (As you can see the tables are now turned
More informationFINALTERM EXAMINATION FALL 2006
FINALTERM EXAMINATION FALL 2006 QUESTION NO: 1 (MARKS: 1) - PLEASE CHOOSE ONE Compared to the equilibrium price and quantity sold in a competitive market, a monopolist Will charge a price and sell a quantity.
More informationCourse Information Introduction to Economics I (ECON 1001)
Course Information Introduction to Economics I (ECON 1001) Course Code ECON 1001 Course Title Course Discipline Introduction to Economics I Economics Units of Credit Three (3) Pre-requisite None Semester
More informationEcon 321 Test 02 Fall 2004
Econ 321 Test 02 Fall 2004 True/False Indicate whether the sentence or statement is true or false. 1. Either a rise in marginal cost or a fall in marginal revenue could cause a firm to reduce its output
More informationChapter 2. Practice Quiz -
Chapter 2 II. Demand A. Demand Shifters 1. Income 2. Prices of Related Goods 3. Advertising and Consumer Tastes 4. Popolation 5. Consumer Expectations 6. Other Factors B. The Demand Function C. Consumer
More informationMicro Semester Review Name:
Micro Semester Review Name: The following review is set up to emphasize certain concepts, graphs and terms. It is the responsibility of the individual teachers to emphasize and review the analysis aspects
More informationChapter 1- Introduction
Chapter 1- Introduction A SIMPLE ECONOMY Central PROBLEMS OF AN ECONOMY: scarcity of resources problem of choice Every society has to decide on how to use its scarce resources. Production, exchange and
More informationB Com SEMESTER I Business Economics- I
B Com SEMESTER I Business Economics- I UNIT/ SESSION/ HOURS TOPICS FOR STUDENT PREPARATION PROCEDURE (PROCESS) LEARNING OUTCOME (OUTPUT) ASSESSMENT (TIME REQUIRED) (INPUT) 4 hours Module I concepts Basic.
More informationTHE PRODUCTION FUNCTION
Lecture 5 Producer Behavior THE PRODUCTION FUNCTION The Digital Economist Production refers to the conversion of inputs, the factors of production, into desired output. This relationship is about making
More informationChapter 33: Terms of Trade
Chapter 33: Terms of Trade 1 The Terms of Trade The division of the gains from trade depends on the terms of trade. The terms of trade are measured by the ratio of the price of exports to the price of
More informationReview, First Quiz Managerial Economics: Eco 685 Quiz Date: Thursday, September 7, 2017
Review, First Quiz Managerial Economics: Eco 685 Quiz Date: Thursday, September 7, 2017 All questions come from the class notes: Introduction, Production Theory, and Cost Theory up to and including section
More informationPractice Exam 3: S201 Walker Fall 2004
Practice Exam 3: S201 Walker Fall 2004 I. Multiple Choice (3 points each) 1. Which of the following statements about the short-run is false? A. The marginal product of labor may increase or decrease. B.
More informationCourse Information Introduction to Economics I (ECON 1001)
Course Information Introduction to Economics I (ECON 1001) Course Code ECON 1001 Course Title Course Discipline Introduction to Economics I Economics Units of Credit Three (3) Pre-requisite None Semester
More informationMicroeconomics I PEPM U6101. Summer 2015 Syllabus
Lectures: TR 11:00am-12:50pm, room TBA Instructor: Emanuele Gerratana Office: IAB 1309A Telephone: 212-854 8506 Email: eg198@columbia.edu Office Hours: Thursdays: 1:00pm-2:00pm Microeconomics I PEPM U6101.
More informationLesson22: Trade under Monopolistic Competition
International trade in the global economy 60 hours II Semester Luca Salvatici luca.salvatici@uniroma3.it Lesson22: Trade under Monopolistic Competition 1 Trade under Monopolistic Competition Assumptions
More informationUnit 5. Producer theory: revenues and costs
Unit 5. Producer theory: revenues and costs Learning objectives to understand the concept of the short-run production function, describing the relationship between the quantity of inputs and the quantity
More informationChapter 3 Labor Demand
Chapter 3 Labor Demand 3.1 Introduction The objective of this chapter is showing the concept of labor demand, how to derive labor demand both short run and long run, elasticity, and relating policy. We
More informationSEMESTER Examination Paper (COVER PAGE) Time : pm Reading Time : Nil
ECO 112 / Page 1 of 1 Session : August 2002 SEMESTER Examination Paper (COVER PAGE) Programme : Cambridge A-Level Programme Course : ECO 112 : Economics 2 Date of Examination : October 28, 2002 Time :
More information