i ! Managerial Economies Iran Aesovece Gait eB babor D Maes ATE | Me MR Wow math an additional employee odds jn profits @ @ r met \ aR ! e t te Denard Conve for Labor The Ficm vill hire employees: te He pout vhere Me, equals PPX 4 \ mee tg be fig = Mer MR THE MRe, = Mat, OTe. m mR ee are 2h. mR Cc 4b bre, AL: MR Lo BQ bre 2 me afice : x Mey = MAP, Re, = MAA, : given MAGEE } given Mey = AA, A =Mat, | Fg MRP, 1 Mayet ‘ fe La tee * ‘an, therefore Ht shuld not Factor Sonk Cot + Acort Hal vill aot be mitected by your deci inte yore decision for [Tneremental Get - Not marginal ost, change in your total out ay a cesutt implverts, Among ial decision , ea). nev pravet line, new adver Nisliy compan - law Variable proportions and dining retems. mee AT © Afffeatve) Afe = Tre ae 7a Pana : ANE ae ave = Ive be ng " Q ate = Te a in ig VC Meetivel cecepical of APL. © e ave ave * IWC; Qmee AQ | eens | ul I me f MO Mer ATE, Blwit). (ae Bea pe $a : «wil i 8 4 | mp. Tacteasing cetvins to scale « peopolioadle Increase ia all inputs will moce Han propstionstely inegease ootgrt or retvens less Han Decearsing cetvins te seale - propionate inerense in all inprts ill resell in a Semone rept celuins | Gaadant tetvns te seale ° Lang sun + Planning hocizon = san plan on any sina operation you var, once yar net you are in He sheet tun. Shoat Ron fag. Cocke I vat 0 capital Ree ok a, mas : ens te Taerentig LEH pecensrg Sole” LRAC - Envelope Curve. ~ Cotains all SRA Curves“ 7 AS sema\ Diseeononieg oo LAB - Tetera\ Eerenies @ | Factors 0? Intern economies Ms yor tnecense poplin ort Fockors oF prolictnn bent spt [Inkectol economies [1 Mabanie 2 mechanics 1 teals 2 tale (epi, 3 2 Erg S Bs S Toons 12 Trans Tedmnoloy. a8 egerntion. tater © ty odes ney lare vie as facet Ts exensed Alle to din vibe dizaats ftom supers Prrancing on more favorable tems Ce ee Taternal disecomomies 1) Brooke dewn in Communation 2) Breakdown in coordination 1 “TR, - cee aes °(@) al a Tes Tee + AVE (@) Save For Break Even Quantity seq Tre Pays TH+ AVE C®) (Q) “AR @ TFC, QC Pave) = TES “CEES Break Even Qq Boniity‘om. a) TRE =*2pe00 Qee > 4000 1900 vst sell 1000 units to breaker | pe \aer. «4 OT, 430, 000 Qeg = TELA My . 3000439000 _ 1100 Units to reoch petit | ate 22000 Pave -5 eu | pees | pes pecaliny Lesecoge * Rate of Firms % TFC +o AVC. + Asa titm betons mort outemated , TEC goes up and AVC gees. down. * this Inccesses BEQ othe moe Leverage d He firm We more souitive it is 40 clanges in sale. hn’) TRC= 44000 Qy. = 00, 1500 pve? Ay ee Pe -% Degiee of eperading leveroge CDOL) - Measutes bow sensitive the firms profes te clanges in ovtprter sabes fais Dor: #4 ca Aw am, @ i Te * ae * or BGS KG | ar 84, = sqo09 Tres 3000 Qua TECA My DOL: Aalp-Ae) . Q pwes § e BYC, ba (Prue) - Tee, fet By = QCpe Ave) = TRE 1Q= N,o00 lonstane P = @(p-nve) AW = 0Q(p-Ave) @ CP AUC)-TFE. 8 Fp" 20000 = woo(s-s) 5 Ll 1 Tee~ 6000 De* Vypedged) = hIS6 1,000 (4-Sy~ $00 ave? 1, 000 ¢-4) “Cove 8The leaker DOL means Ht company ts more sensitive toa che In salec 9 ery "9Pqeia- le [Tes 10046594 Q% ) Find Taw @ 2 >a Ny mae @ Find DM Toe Q Feonth? Find & | | Wosume you ave a Small Loew ‘We 9000 /ma in alhyrs sell er 4O00;000 to ber Wsed as a ‘wild lite preserve Coe 2%, ' We? “what AE ib Was erpecled tog Ms 69900 an 65, 000 at 79,000 peter 3° ye. gevemnmont eanflscates if, eve 2 Chice te be Paid weekly, Menthlyer yearly , Yhich do you prefer ? Claice $2 pry weekly, monthly or yeasty which de yor prefer?etish Leon omies petition = 4 eritecia Fy Good of arevice mast be hemegtnin, cagordlass of whe makes i+ Becker mocked krusledse - Reduces (AU fines Kney He vacion metleds of pskeing egeed or Sreviee and whichis Hee vest 2 TE Here ts & buyer will te pe a ligher price alt Giems Kune ond whore 3.1 Ties abe aware Ho dhey con prodve nore mony in an alternte. getter inbisteies a, Kicns proluee adbeenadives ond Kroy « i jh Htywoke mere of the goods ty ! know if they can pootire vt onnay Buyers AL buyers are avare of all clacacterichics & He Spt 7 TH there is 0 cheopec price fer the sco", aM boyers Know, 2) Ease of enkey inteand ov of rockels Sellecs-@uleante nol blocked | eve bout of tle shove e Boyes e : wre facoed Le bry gaat Ne? Puyer anh Ae ont Selee aan af feel the parked price of fy 4 cance tal bbc hed : ce : pes TR gs OR ce AR= PQ coe ner e® 4h ,2 M1000 VR, 5 "8000 AAR: 4000 LQs 100 bie . 1009 -Ko AY 7 100We TR -Te Qranh Alo GAT) @ Loss Regaciless A your weskiel steattc yin Hae shat way PF AVC ts He shit boon poset TE ate tiem is Bately compe on the AVE eye, Ghee, shel foun port also located atthe mininnve Fitas y prices above tHe shut dwn price SLE Te pasty aged ip equal 3B Me supply evtve, Becawse Pe me | é fee Line vay fyi MR ALRIMG ea eee eres Y Gytiewm size dont CREM paannLRMc Qtr way given 940 Peerac Neokinn of Ceteutee PM A= CRACE Leng docstoc’ Spline Vike ae de ARE AR s cotice beast Quanity fee Mer vt By Guecenteed Optimum atleation of terovcce>Mons poly ~ Exists when 1 Fitm press ogeot OF sevice utere HELO ate. no chee lute, * Sdea tens i UT type - SHeategic rmevece manspaly existe wren one firm coalvols He entire Supply of mirsatce Heat 13 essential for be, prodvetion of thal good, st Hype = Badeat oe apyiight rencphly-hewe on Iedindval is granted on eselisive Tight by He government To erante something jevented Ve type © Wekucont Tronpoly = He seivcal oteame by Re tine the Lene Inccrases , Heir ptsithian to go gteet, the onkance ime He wothel 5 Ub R eal eee x aE Type ~ begat Manopely (Liters rorepely) = te quera ment gies ove. Liem He exclisive cig! Yo cise one good, eo Qs oo TR? 000 BeaatGerer 7,-7100%94 ne: BR 649. 5.99 Menpoly Liem conhoved by demend cutee ar, ae Loss ' me P, Oe are Atte RTO Las pear DeARLeg Run Ptr DB LossMor pelistic cwpe dion = getebese thse rmany buptes ood sel ferfect packet Knowbease “Base of enbey | Aye en rTLong Ru, Bvg, Piem i Lane *) Ss Lene ‘ ok 5 pepe a Q yacioke%) = Hyp fay de hake Ube ehacacincisticg of he opaeet apeeatiy coated Froth ver selling expenses Sdvee\iving Arotnning fe provide beer service tors involree sheild be less Han bonetit expected . Aeecrases , th demend Cutve leumes imore herizoital, As product eit Fetentier | Broad benof become igopeies,WW A= VP 0+ 6504 Q* t) Wor & TR 172 Q- 100% t= N2R - 1092-00 -650 - G2 ai. 107 -2a@ = 0 IQ Q= abe ay bind 0 2 We Loo 4 107(4 665 Cues” = O,21 Dey? a , £. £,,5 ape AQ ira 44 Q=4.86 pov 10 (ase) 2340 Gay = 2,539 E laste ae ay PVT Fane 2% 39 Wve peticd + pon. C28, 3968) + 600, 2, 2H OO 2, 3465 552) Py= ope (44134) 4.65 0000, 64205 + 70000 C874) 173, 886| Cloyler 2 2§ TC=64 Q>0.03Q7+0.001 Q3 TR: 6Q-o.NQ* TREQ-C > Ate pe Te oe PEER 0=6-0.1Q fr TR=TC W JTR JTC = 0 | €- O2Q-14 00697 0003 Q7% = 0 Ho =,203g7 - O14 QtS 70 ave TW. | a we Ths Oe SQ eae? 4 gd FE 15Q 1 owe Sre-Se i = yb + St8Q snags : Os ~Lagredy +10 ahh 7 hiv. aaa z tbdeb Ve 60,000 Liye 65,000 Bye 79208 iT elt eye Meo,oon foley yor Anke if WON = \TZ 2ag.eq Take 180,200 Bede cd tehe wall HAL ork of 2 yt Daynil tate 6% fisg OV @ Given TR 500g- sq 1,s00- 3,1as Find Sane eae a 8) Be Qza5 as + vo 4a) = 250 BD MRyher GTS OS Find Qapen TRO Mae VW Frad P when YROMer 00-WQZO +507 so0lss)- S(S0)* P+ SO s00-s{s0)* aso 7@ P= 172 +10Q @ ae hare AC 004 eSae Q® Y) Feet geal met quecttly [AYR pro hoe a raalty Fink DE rex @ trom gatind € are TROT TRE OQ The Citas wad(i7a ~ 472408) TRE (7A + 19Q(17.2- 120 -Q) TR =-172@-1007 We 2 C1092 172.0) ~C@? 1650 oD = -10g*= 113@ -@? - 108 = -WQ"~a37 Q-166 = -ah@ ~ 337to rece soo€l- Gq p 05 =1-78 -.45 = Yq e.tbley = 4 elasPuce oNig oboly = goals a6 sin doe ade | oiyoaaty - | Otgeeely eg poly = BeR ete te pyedie + Tahedepraleree in pricing ~ Frigivn derisive s a€fiortns by angel dees ren rhion ice Faking Collegian + igo gelie peice loyether ve “inked demend Gutve * Swezey developed His Inswae only 3 in rorkel e Ejplnias prvte Nl, Figity tn Si Aigppaties Sosean .