Assignments Due on 2/6/20: Managerial Economics

1. Assume that:
a) The supply schedule is given from P = 2 + 3Qs
And
b) The demand schedule is given from P= 10 - Qd

Find the equilibrium price & the equilibrium quantity.

Draw a diagram and account for the equilibrium price, equilibrium quantity,
slope, etc…

2. Solve also all the problems reflected by the handout that was
distributed to class.

3. Visualize algebraically and diagrammatically the following:

Complementary goods,
Substitute goods,
Normal goods, and
Inferior goods.

4. Can information asymmetry be used for demand and supply applications???

5. Familiarize yourselves with the “market for lemons.”

6. What are Giffen Goods?

  What are Veblen Goods?
Do they defy the law of demand? Explain!

7. What are the “snob” and “bandwagon” effects?

8. Ponder the following: Has recent economic analysis changed to account for
the human element??? How??? Explain!!!
Has behavioral economics and cognitive economic analysis impacted our
understanding of economics and other areas?

9. Read the article by Simon, Herbert, A., Rational Decision-Making in

Business Organizations, Nobel Memorial Lecture, 8 December, 1978.
You can find it at:

https://www.nobelprize.org/uploads/2018/06/simon-lecture.pdf

(Be prepared to discuss it in class).

10. Start Reading the Elasticity chapter.

11. Identify the connection, if any, between elasticity and the slope.

12. Illustrate algebraically and diagrammatically the unitary elasticity case.

Additional Class Discussions/Presentations:

For our next class read and discuss the following articles:

a-Stiglitz, Joseph E., “The End of Neoliberalism and the Rebirth of

History,” Nov 4, 2019 (Please see attached document)

b-Thompson, Derek and J. Weissmann, “The Cheapest Generation: Why

Millennials aren’t Buying Cars or Houses, and What that Means for
the Economy”, ATLANTIC MAGAZINE, September 2012.

You can access the article at:

http://www.theatlantic.com/magazine/archive/2012/09/the-
cheapest-generation/309060/?single_page=true#

c-Thompson, Derek, “Millennials Didn’t Kill the Economy. The Economy

Killed Millennials”, ATLANTIC MAGAZINE, December 2018.

You can access the article at:

https://www.theatlantic.com/ideas/archive/2018/12/stop-blaming-
millennials-killing-economy/577408/

d- Do the research on the 2020 “World Economic Forum.”

Identify the main ideas and issues on their agenda.

Research Paper:

Do not forget your Research Paper titled:

“Why do corporations exist?” 

Please submit:
a. a more refined four page outline, and

b. additional bibliographical references that you have collected

thus far to support your research project.

The research papers are due on April 9th,

2020!!!!!!!!!!!!!!!!!!!!!!!!

*Please do not forget to bring a hard copy of your answers

to these homework questions*

That is all for now…!!!

APPENDIX

-Given our class discussions on 1/23/2020 the following can

provide additional data and information.
(These are ONLY as reference points for those of you
interested in the subject-matter):

Bailing Out the Banks

https://www.pbs.org/wgbh/pages/frontline/oral-history/financial-
crisis/tags/bailouts/

https://www.pbs.org/wgbh/pages/frontline/oral-history/financial-crisis/

Beyond GDP – is it time to rethink the way we measure

growth?

https://www.weforum.org/agenda/2016/04/beyond-gdp-is-it-time-
to-rethink-the-way-we-measure-growth/
-Also, as per our class discussion, please see below
information on the Graduate Student Conference
(We will revisit this issue when we get back to class on 2/6/20)

Graduate Conference

Master and doctoral students at Point Park University, as well as graduate

alumni, are invited to submit scholarly/theoretical research papers for
presentation at the University's Third Annual Graduate Students
Conference Saturday, March 28, 2020, from 8:30 a.m. to 1 p.m. in West
Penn Hall.

Co-sponsored by the University and the Graduate Student Association, all

disciplines/topics of research papers and poster presentations are welcome. 

https://www.pointpark.edu/news/Point-Park-University-Graduate-
Students-Conference-2020