Earl Daniel Remoroza

BSA 1-16

Assignment in Managerial Economics

1. Managerial economics prescribes rules for improving managerial decisions.

It also helps managers recognize how economic forces affect organizations
and describes the economic consequences of managerial behavior. Also
profit maximation is the best overall objective for today businesses,
because, all the decisions whether investment or financing etc. are focused
on maximizing the profits to optimum levels.

2.

3. In Home vs. Mountains, Mountain is the better choice because it has 2

pro’s and 1 con while in Beach vs. Mountains, Beach is the better choice
same explanation from the previous case.

4. Since the managers usually own a small amount of power because of it’s
small fractions in stock, their interest may not be served by maximizing the
profits but to increase or maximizing their own shares

5. The other forces are the performance of the company, the competitive
pressure and the management remuneration.