Attribution Non-Commercial (BY-NC)

8.1K views

Attribution Non-Commercial (BY-NC)

- Managerial Economics Questions and Answers
- Chapter#7 Cost Theory and Analysis Solution
- Chapter#1 Introduction to Managerial Economics solution
- Chapter#9 Perfect Competition and Monopoly Solution
- Solutions Managerial Economics Chapter 3
- Managerial Economics
- Managerial Economics (Chapter 6)
- Managerial Economics
- Managerial Economics _ QuestionBank
- Chapter 04 - Cost Theory and Analysis
- Managerial Economics(Chapter 3)
- Production Theory & Analysis i
- Financial Management & Policy by James c. Van Horne 12th edition
- Managerial Economics
- Questio Bank Managerial Economics
- Managerial Economics (Chapter 1)
- Assignment on Managerial Economics
- Demand Analysis - Managerial Economics
- ch 2
- Chapter#7 Cost Theory and Analysis Solution(Economics)

You are on page 1of 11

edu (CRN #10732) Office Hours: T-Th 10:00 a.m.11:30 a.m. and by appointment

Spring 2007

Text: H. Craig Petersen and W. Cris Lewis, Managerial Economics, 4th edition (New York: MacMillan) 1999 (Required) Workbook: H. Craig Petersen and W. Cris Lewis, Managerial Economics: Study Guide w/Software (New York: MacMillan) 1999 (Not required but useful and on reserve in the library). Course Overview: Chapters:

Homework AssignmentsProblems:

1Introduction to Managerial Economics (and Appendix) Chapter 1: 14; Appendix: 16, 14 2Basic Training Chapter 2: 110; Appendix: 17 3Demand Theory & Analysis (and Appendix) Chapter 3: 16, 8, 13, 15, 18 4Regression Techniques and Demand Estimation Chapter 4: 1, 3, 5, 6, 7, 14, 15 5Business and Economic Forecasting (skip pp. 165-170) Chapter 5: 27 6Production Theory Chapter 6: 14, 69, 17, 22 7Cost Theory Chapter 7: 14, 68, 21 8Linear Programming Chapter 8: 16, 10, 11, 13, 16 9Perfect Competition and Monopoly Chapter 9: 14, 6-9 10Monopolistic Competition and Oligopoly (skip pp. 357-58) Chapter 10: 13, 5, 6, 12 12Pricing of Goods and Services Chapter 12: 16, 9 14Risk and Decision-Making Chapter 14: 1, 2, 4, 6, 7, 13, 15, 18 15Capital Budgeting (pp. 497-516 only) Chapter 15: 14, 68, 13 NOTE: If a student has a disability that will likely require some accommodation by the instructor, the student must contact the instructor and document the disability through the Disability Resource Center, preferably during the first week of the course. Any requests for special considerations relating to attendance, pedagogy, taking of examinations, etc., must be discussed with and approved by the instructor. In cooperation with the Disability Resource Center, course materials can be provided in alternative formats, large print, audio, diskette, or Braille. TOOLS Software Program and Excel: We will be making use of the TOOLS software package that is available in computer laboratories 113-115 and 118120 in the basement of the business building and is included with the workbook. The program can be copied at no charge in the lab for use on your personal computer. Instructions for downloading the program in the laboratory are included with this syllabus. Instructions for use of the program are included in the software and in the workbook. It also can be downloaded from the Internet (at www.prenhall.com/petersen ). You should familiarize yourself with this program as soon as possible. (See pp. 5-6 of this syllabus for additional information.) We also will use Excel spreadsheets; it is assumed that you are familiar with and able to use this package. Wireless Classroom: All classrooms in the Business Building are now wireless. Students can buy a wireless card for their laptop computer from Computer Solutions. While this is a wonderful asset, there are a few students who play solitaire and browse the Internet during class; I will become very unpleasant if that occurs. On those occasions when we need the Internet, we will use the classroom computer, so leave your laptops at home. Homework, Examinations, and Grading Policy: Points will be assigned for homework assignments, and examinations as follows: Homework: Each homework assignment is worth 3 points. Assignments are due at the beginning of class on the date they are due; late assignments are not accepted. Possible total points = 13 assignments x 3 points = 39. This is equivalent to the points on almost one-half of an examination. Note: There are questions and problems at the end of each chapter in the text. The assignments refer to the problems. You are expected to provide clear, complete, legible solutions to the problems. Do not submit homework papers that simply have the final answers (most of which have already been provided to you). The difference between the solution and the final answer is discussed below:

It is essential that you be studying and working the homework problems in a timely manner (i.e., at the time the material is being discussed in class). Due dates for the homework problem sets will be established as we go; in order to get through the assigned material, it will be essential that you keep up. It is my experience that classtime often is wasted and progress slowed by a few who are not keeping up with their studying (or not studying at all); to slow up the process to accommodate them is not fair to the majority who are working diligently; therefore we will not be doing that. Finally, we can spend some time in class on guidance on the homework prior to the due date; in fact, given some direction on individual problem is a good use of class time. Between your study, the lectures, and this direction, you should be able to do the problems on your own. In the past, there have been a few who would come to my office weekly or more often the get help on their homework; this is inefficient as well as not being equitable for those who are doing the work on their own. Examinations: There will be two 100-point (one-hour) examinations and a 150-point (two-hour) final examination during the semester on the dates shown below. Tuesday, February 13, 2007 Tuesday, March 27, 2007 Thursday, May 3, 200711:30 a.m.1:20 p.m. (Final Examination) The nature of the test (i.e., problems, multiple-choice questions, etc) will be announced. NOTE: There are no make-up, early or late, examinations. Arrangements will be made for any student who has a conflict due to a University-sponsored activity. (Note: A class field trip is not University- sponsored.) Arrange your schedule to be in class on the dates indicated for the examinations. If you cannot be in class on the examination dates, take some other course. If a serious personal health problem or similar emergency arises in your immediate family, please contact me immediately, and special arrangements will be made. Please do not ask for exceptions to this rule! Extra Credit: Periodically a student will ask (usually after the last week of class) if there is some way to do extra work to improve his/her grade. The answer is no at that point. At the beginning of the term the answer is yes; by studying an extra hour or two during each week you will undoubtedly get extra credit in the sense that your examination scores will be higher. Grades: Your grade for the course will be based on the percentage of total points earned. Final grades will be posted on the Banner System. Possible Homework Points = 39 Possible Exam Points = 350 The final grade for the course will be assigned as follows: Possible Total Points = 389 % of Total Points Course Grade 90-100% A 87-89% B+ 82-86% B 80-81% B75-79% C+ 65-74% C 60-64% D Less than 60% F Economics, Mathematics, and Statistics Background: Students enrolled in this class should have completed Economics 2010, Mathematics 1050 and 1100, and Statistics 2300 or their equivalent. It will be assumed that you know what is taught in these courses. Specifically, it is assumed that your algebra skills are sharp, that you know the rudiments of calculus, and that you know the principles of statistics that are covered in Statistics 2300. If this is not the case, you may need to retake one or more of these classes. Withdrawals and Incomplete Grades:

January 29, 2007, is the last day to withdraw from the class without a notation on your transcript. March 9, 2007 is the last day to withdraw with a notation on your transcript. The grade incomplete will be given only when . . . a student may be unable to complete all of the work in a course due to extenuating circumstances, but not due to poor performance. Under no circumstances is withdrawal after the twenty-fifth day permitted for the purpose of avoiding an unsatisfactory grade; neither shall 'I' grades be given to avoid the consequences of inadequate performance. Office Hours: TTh 10:00-11:30 a.m. (other times by appointment). I will be happy to see you at any time as long as I know that you are coming.

Attendance and Preparation: You are expected to be in attendance every day and to arrive on time; that attendance will be monitored. Your course grade will be reduced by one letter grade for each three days of missed class. I will be calling on students on a regular basis; make sure you have studied the assigned material thoroughly prior to class. Classroom Dress and Decorum Utah State is a major state research university with first class students and faculty. Part of the preparation for a career in business is the development of a professional approach to work. Specifically, everyone is expected to be punctual and neatly dressed and groomed. If you wear a hat, you will be expected to take it off during class. Note:

1. This class is for students who are intellectually curious and willing to work hard. In particular, it is essential that reading assignments be completed prior to the day they will be discussed, and that all written assignments be turned in at the beginning of class on the due date (except for the final paper - that is due on Friday afternoon of the last class day). If you cannot meet these expectations, this class is not for you.

2. All students are expected to be actively participating in class discussions. Standards for Homework and Examinations Much of the work in this class includes solving problems, each of which is designed to elucidate a principle of managerial economics. In every case you will be expected to provide a clear, concise, complete, carefully written solution. For our purposes, we will distinguish between the solution and the final answer. Consider the following problem: A contract calls for the payment of $1,000 at the end of each of the next 10 years and a lump-sum payment of $10,000 at the end of the 15th year. The discount rate is 10% per year. What is the present value of these payments? The solution is as follows:

_

PVIF0.10,15 PVAF0.10,10

And the final answer is: PV = $8,539.

If this was a ten-point problem, there would be nine points for the solution and one point for the final answer (assuming there was a solution that resulted in the final answer). The final answer alone is worth nothing. A few students might respond as follows: PMT = 1,000 I = 10 PV1 = 6,144.6 and FV = 10,000 I = 10 PV2 = 2,394 PV = PV1 + PV2 = 6,145 + 2,394 = 8,539. This is nothing more than a restatement of the parameters of the problem (which is a waste of time), followed by the final answer. Such a response will receive no points as no solution was provided. Also, make sure that your language is precise in answering both the homework and examination problems. Statements such as: . . . when this goes up, that goes down are totally meaningless but occurs with some. The grading standard is different for the homework and the examinations. Because of a limited budget, the homework is graded as follows: if you have made a good faith effort to work all of the problems, you will receive all the points, even though there may be errors on some problems. In fact, not all the problems will be graded. On the examination, all problems will be carefully graded and points will be subtracted for any errors. n = 15 n = 10

USING THE TOOLS SOFTWARE PROGRAM TOOLS can be used to solve many of the problems discussed in Managerial Economics, by Petersen and Lewis. Specifically, the TOOLS program will calculate the following: 1. 2. PRESENT OR FUTURE VALUE FOR TIME VALUE OF MONEY PROBLEMS. EXPECTED VALUE, STANDARD DEVIATION, AND THE COEFFICIENT OF VARIATION FOR PROBLEMS THAT INVOLVE PROBABILITY DISTRIBUTIONS. CONSTANT RATE OF CHANGE AND CONSTANT PERCENTAGE RATE OF CHANGE FOR TREND PROJECTION. ALSO, THE OPTIMAL SMOOTHING CONSTANT FOR EXPONENTIAL SMOOTHING. COEFFICIENTS, t-STATISTICS, AND THE R2 FOR MULTIPLE REGRESSION PROBLEMS. ELEMENTS OF DIRECT AND INDIRECT REQUIREMENTS MATRIX AND EFFECTS OF CHANGES IN FINAL DEMAND FOR INPUT/OUTPUT PROBLEMS. SOLUTION AND SHADOW PRICES FOR LINEAR PROGRAMMING PROBLEMS. NET PRESENT VALUE, BENEFIT/COST RATIO, AND INTERNAL RATE OF RETURN FOR CAPITAL BUDGETING PROBLEMS. MEAN, MEDIAN, STANDARD DEVIATION, AND THE FREQUENCY DISTRIBUTION OF A DATA SET. SOLUTION TO A SYSTEM OF LINEAR EQUATIONS. ROOTS OF A QUADRATIC EQUATION.

3.

4. 5.

6. 7.

8.

9. 10.

TOOLS frees the user from the need to make the tedious calculations necessary to solve some managerial economics problems. Thus, the student can concentrate on selecting the proper method for analysis and interpreting results generated by TOOLS. Useful Web Sites: Address http://investor.msn.com http://www.bloomberg.com http://www.economagic.com http://quote.pathfinder.com/money http://www.wsm.com/index.html http://www.ecomicsearch.com/ Whats There: (financial news, stock quotes) (financial news, stock quotes) (economic data, charts) (financial news, stock quotes) (financial news, stock quotes) (internet site designed specifically for economics students; includes economic data, job information, tutorial system)

Selected check figures for Petersen & Lewis, 4th ed. Chapter 1 1-1. Acct. Profit = 42,000 Econ. Profit = -9,500 1-2. Historic cost: = 7,500 Opportunity cost: = -5,000 1-3. Weekly income Maintenance crew: $420 Pizza Shop: $250 1A-3. NPV = -167,245 (dont implement plan)

1A-1. I: 4,369,820 II. 1,945,190 1A-4. 44,955 Chapter 2 2-1. a. P = 9; Q = 55 1A-5. $263.37

1A-7. 3,501,332

b. QD = 50; QS = 60

c. QD = 75; QS = 35

d. P = 19; Q = 105 2-6. Q = 25 2-7. Yes; No; No 2-8. 6.2; 2.27; 0.37

2-5. AR = 100 - Q; AC = 1000/Q + 10 + 0.01Q; A = 50 - 0.1Q - 1000/Q 2-9. 6,300; 4,244; 0.674 2-12. a. Q = 5 b. Q = 5 2-10. 620; 343; 0.55 2-13. b. Q = 1.67

c. 24.8

b. 37,189,463

b. TC = 10.3Q - 0.4Q2 + 0.00012Q3; MC = 10.3 - 0.8Q + 0.00024Q2 Chapter 3 3-1. a. Q = 20 127.50 b. 20; 100; 7.5 3-5. a. -0.5; -1.0 3-9. a. -0.818 b. Q = 20 - 2P 3-3. a. 36 - 6P 3-6. a. -0.282 c. -0.6 c. P = 10 - 0.5Q b. -1; -0.25; -0.50 b. -0.282

d. TR = 10Q - 0.5Q2

3-4. a. Q = 1,250; P = 5,000 b. 6,250,000 c. -0.67 3-8. Q = 5,714; )TR = -1,571,600 b. Q < 5 c. -0.250 b. 0.329

d. -0.356 c. 49,508,600

3-11. a. Q = 5; b. P = 28.20

3-14. a. 6,080

b. 71.60; 22

3-19. b. P = 20

a b s i a b Q

b. 65.51 # # 77.88 4-6. b. Q = 250.20 c. 0.46 4-11. a. 21,600,000 b. -144,000; 2,400 c. 25,095

4-12. Es = 0.5

4-14. 9.93; 0.359; I = -7.07 - 0.211 Age + 2.245 ED + 1.024 Exp b. If IQ = 120, GPA = 2.42

c. 94.64 + 7.02k

d. 97.12(1.058)t

5-5. a. $6,700,000; $6,800,000; $6,900,000 5-6. a. 0.142 meters or 3.3% 5-10. b. $4mm c. 14mm 5-15: a. 2.33% b. 119.3; 122.0

6-7. a. K = 0.8L

6-9. K = 80 - 4L; K = 200 - 4L; K = 200 - 3.2 6-11. a. L = 5.15; 6-17. a. K = 2.1L b. no limit on output b. L = 3.152; K = 14.207

6-18. a. K = 200;

b. K = 133.3

6-19. a. 2,462

b. 220.1

6-21. a. 912.4; MPK = 4.562; MPL = 16.424 Chapter 7 7-3. b. Q = 20 7-4. a. 500; b. 1,500

b. L = 4.633; K = 4.786

7-6. Econ: 13,513; English: 13,421; Physics: 11,515; PE: 5,405 7-8. = 990,000 7-11. a. 50 7-9. a. -22,000 b. 32,000 b. 2; 1.33 b. 10 7-12. Add Flight 7-18. 1,581

7-7. a. 40; 50; 66.7 b. 1.25; 1.33; 1.50 7-10. a. 4.57; 2.67; 2.09 b. 16; 4; 2.67 7-14. P = 14; ) = 10,000 7-19. b. Q = 18; AVC = 119 b. AC 1.83 - 0.015Q + 0.000039Q2 Chapter 8

7-17. a. 15 d. 1.11

B B

8-11. b. R1 = 26,667; R2 = 0; R3 = 0 Z = $9,333,333 c. C1 = C2 = 0; C3 = 116.67; V = $9,333,333 8-12. a. 666.7; 0; 416.7; = 80 8-13. Cost = $72.6mm b. 0; 0; 0; 0.01; 0.01 8-15. a. 186,190 c. 180,208

c. P = 600; Q = 38,000

9-2. Q = 50

b. AC = 320; = 4,000

9-3. a. Q = 10 b. P = 400 b. No

9-4. Profit max for Q is 30. Reduce output 9-5. a. P = 15; Q = 40/3 b. = -31.5 9-7. a. Q = 1,000; P = 20 9-11. b. 50 9-8. a. 62.50

b. = 0

b. P = 0.21

c. E() = 0

10-12. a. A = 23

Chapter 11 11-2. a. q1 = q2 = 8a; P = 33a 11-11. $6,090,830; $6,175,442 11-5. a. 22.5; 42; 45; 72.5 11-6. b. C 11-7. b. 3; c. 1

c. 272.3; 301.3

11-13. a. 248.69; 244.33 b. 22.5% Chapter 12 12-1. a. PP = 1.25; PF = 0.85 b. PF = 0.50; QF = 500 12-2. a. Yes b. No 12-3. Q = 233.3; P = 0.4333

12-4. a. Q = 7; = 49 b. Q = 3.5; = 24.50 b. Q = 13; P = 3.86; = 24.14 12-7. a. 1,805; b. 902.50 12-10. P = 120

B

12-5. a. Q1 = 5; P1 = 3; Q2 = 8; P2 = 6; = 37

12-6. QU = 22,500; QJ = 20,000; PU = 21,000; PJ = 16,000; = 272,500,000 12-9. a. = 255 without bundling and $270 with bundling. 12-12. b. QS = 13.26; QT = 16.08 c. QT = 15 b. = 330

B

12-13. QB = 2,500; QN = 10,000; PB = 20; PN = 20 Chapter 13 13-1. a. W = 2.86; Q = 8.57mm 13-2. b. W = 199,984

c. QD = 7.0 m; QS = 11.4

c. W = 99,989

b. Rent = 600,000

c. 3,000

13-10. P = 4; L = 9.65; Q = 46.6; W = 4.83 Chapter 14 14-1. No; Yes; No 14-2. a. 15; 10; 0.67 b. 20; 7.07; 0.35 14-3. a. 6, 9.95, 1.66; b. 17, 7.81, 0.46

14-4. 2; 19.9; 9.95; 3.2; 4.28; 1.34 14-7. a. 6.91 b. 1,000; 6.91; 6.90

14-6. For U = ln W take game I; for U = W2 take game II d. 992.27 14-8. $90 14-9. a. 240,000; 224,499; 0.94; 195,000; 52,202; 0.27

14-11. a. 40,000

c. W = 178

14-12. a. 28; 27.13; 0.97 18; 7.48; 0.42 b. 4,080; 3,764; 0.92 3,220; 1,209; 0.38 14-13. a. 102,600; 100,000 14-15. b. 88.2; 158 Chapter 15 15-1. b. E, B, D, and A c. 19.8 million 15-2. 8,024; 41.0%; 6,669; 23.6% 15-5. a. -241,086; 3.77% 15-11. a. 50 15-3. b. 1; 7; 3; 6; 4; 11.3 million 15-6. NPV = -25,235 b. 60 c. 0.267 b. 4,977; 5,000 14-14. a. 1,900; 1,880 b. 30.8; 30.7 c. $60

15-4. a. 8.4% b. 18%; 13%; 15% c. 13% 15-7. a. all except A b. B and E

c. New project

15-13. -14,117 -48,661 5,578 12.2% 8.51% 14.03% Chapter 16 16-1. a. K = 0.5L 16-5. PV = 813.72 b. K = 0.5L

16-2. a. Increasing

b. Unaffected

16-3. a. 7.25%

b. 6.4%

16-8. t = 6

Chapter 18 18-1. a. P = 8; Q = 260 18-4. a. P = 80 b. Q = 252 18.2. a. P = 17, Q = 40.5 c. Q = 20; P = 80 d. No change b. P = 17.90, q = 37.35 18-3. TR = 600,000

b. Q = 50; P = 50

Economics 4010 Tools Software Information A. To execute from any labs 113, 115, 118, and 120 in the Business Building:

Start 9 All Programs 9 Dept Apps 9 Economics 9 Tools 9

B. To download in laboratory

My Computer 9 I: Drive 9 Tools 9 New Tools 9 Student Disks Disk 1 9 File & Folder Tasks Copy this folder Disk 2 9 File & Folder Tasks Copy this Folder

C. To download from the Internet, go to: www.prenhall.com/petersen and follow the instructions.

- Managerial Economics Questions and AnswersUploaded bynisajames
- Chapter#7 Cost Theory and Analysis SolutionUploaded bySadaf Faruqui
- Chapter#1 Introduction to Managerial Economics solutionUploaded bySadaf Faruqui
- Chapter#9 Perfect Competition and Monopoly SolutionUploaded bySadaf Faruqui
- Solutions Managerial Economics Chapter 3Uploaded byPuji Hikmah
- Managerial EconomicsUploaded byPratibhaVijaykumarBale
- Managerial Economics (Chapter 6)Uploaded byapi-3703724
- Managerial EconomicsUploaded byRaghu Sabbithi
- Managerial Economics _ QuestionBankUploaded byBrian Miller
- Chapter 04 - Cost Theory and AnalysisUploaded byphannarith
- Managerial Economics(Chapter 3)Uploaded byapi-3703724
- Production Theory & Analysis iUploaded bySiddharth
- Financial Management & Policy by James c. Van Horne 12th editionUploaded byKashif Mirza
- Managerial EconomicsUploaded bysukumar_s
- Questio Bank Managerial EconomicsUploaded bySarthak Bhargava
- Managerial Economics (Chapter 1)Uploaded byapi-3703724
- Assignment on Managerial EconomicsUploaded bydiplococcous
- Demand Analysis - Managerial EconomicsUploaded bydiivya1987
- ch 2Uploaded byRajat Mittal
- Chapter#7 Cost Theory and Analysis Solution(Economics)Uploaded byUmer Bhutta
- Chapter 2 in managerial economicUploaded bymyra
- Question Bank of Managerial Economics _2 MarkUploaded bylakkuMS
- I_5ManagerialEconomicsUploaded byDr-Muhammad Waseem Bari
- Question Bank of Managerial Economics _1MarkUploaded bylakkuMS
- SCDL - Managerial EconomicsUploaded byapi-3733148
- Solutions Chapter 5Uploaded byYoussef Afkir
- 21165695-18004333-Cost-Theory-and-AnalysisUploaded bysunitaagrawal
- Managerial Economics Multiple Choice 2003Uploaded byNeha Sngh
- Managerial economics chapter 1Uploaded byDanish Basit
- Solution for Chapter 15Uploaded byShin Cucu

- Bracket DesignUploaded bydicktracy11
- 123Uploaded byShwetank Sharma
- Physics Form 4 Yearly Lesson PlanUploaded byArfa Suhaida Zain
- plc Module24.pdfUploaded bychirag_parekh7620046590
- 9A01301 Mechanics of SolidsUploaded bysivabharathamurthy
- Solving Optimization Problems Using the Matlab OptUploaded byFirman Pahrizal
- 1-s2.0-S1743967114000348-main_2Uploaded byAnand Utsav Kapoor
- Fljs SampleUploaded byYrvin Escorihuela
- Interpretation of Data is Tricky and Challenging.Uploaded byM S Sridhar
- 2A2 Signal Conditioning L1 Notes CollinsUploaded byKev107
- Financial Math_topicUploaded byNiño Mark Morada
- Using the Group Functions QuestionsUploaded byBiswanath Bose
- Ma 102 Lecture Notes 9Uploaded byShubhamMittal
- A Genetic Algorithm TutorialUploaded byliton_kabir
- NewJan09Uploaded byapi-27370939
- Practice Polynomials.pdfUploaded byCarolina Ortiz Uriarte
- fisica newtonianaUploaded bychatahomo
- Syllabus_Mathematics in the Modern WorldUploaded byRen Ren Billones
- Application of Thermodynamics to Flow ProcessesUploaded byAldren RebaLde
- Ldpc CodesUploaded bybregajalma
- Metrication Manual GFCUploaded bymdeenk
- Rajib Mall Lecture NotesUploaded byAnuj Nagpal
- Number TheoryUploaded byStian Haklev
- Exp_9_OP_Amps_v08Uploaded byksay1504
- THK 2010 SyllabusUploaded byAaron Leong
- (15) Chi-square, Student’s t and Snedecor’s F distributionsUploaded byASClabISB
- Lesson 10Uploaded byNat
- bio sprint labUploaded byapi-381352732
- Erosion Modeling and Sand Management With Ansys CfdUploaded byMicheleDiSclafani
- Basics Vario GramUploaded byGiovanny Salazar