BRAC University Name Md.

Rakin Zarif Badruddoza

MBA Programme Section 01
ID 21364130
Fall 2021 The Candidate is aware that a plagiarism
ECO 501: Managerial Economics check will be made and an oral
assessment may follow.
Sections: 1 & 2
Assignment 1
INSTRUCTIONS. PLEASE READ CAREFULLY
1. There are THREE pages in this Script: Page 1/3; Page 2/3; and Page 3/3
2. Distribution Date: Tue Oct 26, 2021 after Class of Section 2
3. Submission Date: 9pm, Oct 30, 2021
4. Submission Platform: Google Classroom or Email: ext.asrarul.islam@bracu.net
5. Submission Format: Word or PDF
6. FILE NAME:
Example For Section 1
21-3- Sec 1- Assign 1- ID- Name
21-3- Sec 1- Assign 1- 20264027- Tahmim Hossain
Example For Section 2
21-3- Sec 2- Assign 1- ID- Name
21-3- Sec 2- Assign 1- 21264052- Nehazee Ahmed
7. Name, Section, ID have to be mentioned clearly in the above box
8. The script shall be checked for plagiarism
9. I shall mention who will be orally assessed in the next class.
10. Try to think on your own
11. Good Luck
QUESTION:

PART I: You have decided to do an MBA at BRAC Univ after comparing an MBA with
another Univ, and a handsome job offer outside Dhaka. Rationalise your decision using
the concept of Opportunity Cost.

PART II: Two semesters later, you find your decision to do an MBA is a bad sunk cost.
Propose a realistic solution to this problem.
YOU MAY WRITE FROM BENEATH THIS LINE
YOU CANNOT EXCEED PAGE 3/3
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 PART I ANSWER:
I have completed my post-graduation from East-West University in 2020. I am familiar with the
culture and environment of EWU, Ewu always helps me to learn more and still does. After
graduating, I had joined in bKash and after that, I moved to RAK ceramics. In 2021 while doing a
job in RAK ceramics, I feel that I need to study more to learn about new things and MBA is the
option to show my potential and I choose for doing MBA at Brac University. I choose Brac
instead of East-West University because, I believe Brac university always a better choice
because Brac is always emphasis the students to research, gather practical knowledge, the best
instructors who guide the students at their level best, and also the top-ranking institution in
Bangladesh with the best environment. Also I want to adopt the new situation in my life in that
point brac is the best choice for me for not choosing EWU.
Another point I'd like to make is that I live in Adabor, and the EWU location is distant from my
home, whereas Brac is very handy for me to attend for offline classes, and Brac is also in the
midst of everything, so it's easier to get there. In the case of opportunity cost this is how I think
and made decision for doing my MBA in Brac university.
The term "opportunity cost" means the value that a person could have got when they could
have chosen another path.
In that case, I joined bKash in October 2020, and after 5 months, RAK Ceramics offered me
additional perks, so I chose RAK Ceramics after evaluating the opportunity costs, such as wage,
official environments, job responsibility, and most importantly, career path. In January of 2021,
I started working at RAK Ceramics. After four months, I noticed a flaw in the managerial
decision on product design and marketing, which cost me some points because, as a marketing
student, I put certain remedies in place but did not pay attention to the managerial aspects.
Also, I want to see myself in the big leagues in the next five years, thus I believe an MBA is the
best way for me to boost my career.
After starting my MBA, RAK Ceramics offered me a to go in Khulna with a more responsibility
and attractive compensation, but I declined and quit my work to pursue my MBA.
What is the cause behind my decision to pursue an MBA rather than accepting the
responsibility I was given?

 MBA in brac university will add more value in future in my career.

 My existing career with the graduation degree will help me to grab better opportunity in
future.
 While doing MBA I also acquiring new skills and give me more time to expand my limits.
People are continually looking for chances, deciding which is best for them and taking steps
forward. There are always some factors that aid people in making decisions; in this question, I

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attempted to provide an answer based on my own experience and to demonstrate what factors
I believe are relevant to the situation.

PART II ANSWER:
A sunk cost is a cost that has already been incurred and cannot be recovered in economics or
business decision-making. While people or organizations decide some points they invest their
valuable things like time, money, etc, and get involved. the time or money etc have been
expense this is the sunk cost. Sunk costs are ignored in economic research because it helps
decision-makers avoid pouring good money after bad when they are engaged in an unprofitable
undertaking. It's not uncommon for a large initial investment in a bad project to lead to a desire
to spend additional money on the project in the hopes of recouping the sunk cost or avoiding
shame.
To pursue my MBA, I must make some difficult decisions and forego many opportunities in
order to better my future. After a few semesters, I may have felt awful about missing out on
many opportunities as a result of my MBA decision. However, there is no going back because I
have already invested my time, money, and career. I can't go back because after I finish my
degree, maybe some doors will open for me that will be beneficial to my career. I can't go
backward, but I can control some variables to lessen the impact of bad sunk costs.

 Give me some time to stress out and think about some positive memories of me. This
will help me to think positive and remind strong mind set of me.
 Go for some trips with friends and family or as I am doing music, making new songs or
reading books will help me relax myself. This will help me fixed my mind into my study.
and stay focused.
 I will give some time with my course instructor for fix my mind to doing MBA and go
on the following steps as they suggested.
 Talked about the issue with family and seek for mental support so that I can continue
and finish my MBA with a good score.

After taking all of the stages, I believe that everyone can make a path to carry on and solve their
problems with the mental support of their family, teachers, friends, and course mates. This, I
believe, is how I can deal with my bad sunk cost and make some practical decisions that will
benefit me.

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