Jamila A.

Gayampal
Managerial Economics
A. ARTICLE #1 Energy efficiency of rice production in farmers’ fields and
intensively cropped research fields in the Philippines
QUESTION NUMBER 1:
1. Rice Farming Efficiency: Rice is a staple crop in the Philippines, and many farmers
rely on it for their livelihoods. The government has been promoting the use of modern
farming techniques, including the adoption of machinery and fertilizers.
Case Study:
1. Analyze the cost structures and production output of two rice farms in different
regions of the Philippines. One farm uses traditional manual labor methods, while the
other employs modern machinery and technology.
2. Assess the cost differences, productivity gains, and profitability to understand the
impact of modernization on rice farming in the Philippines.
Analyzing the cost structures and production output of two rice farms in different regions
of the Philippines, one employing traditional manual labor methods and the other using
modern machinery and technology, can provide valuable insights into the impact of
modernization on rice farming. Here's a step-by-step approach to conducting this
analysis:
Step 1: Data Collection Collect comprehensive data from both farms, including:
1. Cost Structures:
 Labor costs (salaries and wages)
 Cost of machinery and technology (purchase, maintenance, and
depreciation)
 Fertilizer and pesticide costs
 Seed costs
 Land rental or ownership costs
 Water and irrigation expenses
 Miscellaneous expenses (e.g., fuel, electricity)
2. Production Output:
 Total rice yield per hectare
 Quality of rice produced (e.g., grade, milling quality)
Step 2: Cost Analysis
For each farm, break down the costs into categories and calculate the total cost per
hectare for both traditional and modern methods. Ensure that you account for all direct
and indirect expenses.
Step 3: Production Output Analysis
Compare the rice yield and quality between the two farms. Assess whether the
modernized farm has a higher yield and better-quality rice.
Step 4: Productivity Gains
Calculate the productivity gains of the modernized farm by comparing the output (rice
yield) to the input (costs). Determine the increase in productivity in terms of rice yield
per unit cost for each farm.
Step 5: Profitability Analysis
1. Gross Profit: Calculate the gross profit for each farm by subtracting the total
cost from the revenue generated through rice sales.
2. Net Profit: After accounting for all expenses, including fixed and variable costs,
calculate the net profit for each farm.
3. Return on Investment (ROI): Assess the ROI for the modernization efforts by
comparing the net profit to the initial investment in machinery and technology.
Step 6: Recommendations and Conclusion
Based on the analysis, provide recommendations and draw conclusions about the
impact of modernization on rice farming in the Philippines. Consider factors like the
long-term sustainability of modern methods, potential challenges, and the government's
role in supporting farmers' transition to modern techniques.
Key Considerations:
 Climate, soil, and regional variations may affect results, so ensure that the farms
chosen for the study represent typical conditions in their respective regions.
 Assess the environmental impact of modernization, such as water and soil
conservation efforts.
 Explore potential challenges faced by farmers when adopting modern methods,
such as access to capital or training.
By conducting a thorough analysis, you can offer valuable insights into the economic,
social, and environmental aspects of rice farming modernization in the Philippines,
which can inform policy decisions and support farmers in making informed choices
about their farming methods.
B. ARTICLE #2 The Philippines: Resurrecting Manufacturing in a Services
Economy
QUESTIONS NUMBER 2
2. Manufacturing Export Business: Background: The Philippines has a growing
manufacturing sector, including electronics and garments, which are often exported.
Case Study:
1. Examine medium-sized electronics manufacturing company's cost analysis and
production theory.
2. Evaluate how economies of scale, labor costs, and supply chain efficiency impact
their production costs.
3. Explore strategies they employ to remain competitive in the global market and how
these strategies relate to production theory
Examining medium-sized electronics manufacturing company's cost analysis and
production theory in the context of the Philippines' manufacturing sector can provide
insights into the challenges and strategies for remaining competitive in the global
market. Here's a step-by-step approach to address your questions:
Step 1: Cost Analysis and Production Theory
1. Cost Structure Analysis:
 Collect data on the company's cost structure, including:
 Raw materials and component costs
 Labor costs (including wages, benefits, and training)
 Overhead costs (rent, utilities, maintenance)
 Depreciation and amortization
 Marketing and distribution costs
 Research and development expenses
 Analyze how these costs are allocated in the production process.
2. Production Theory:
 Examine the production theory used by the company, which may involve
concepts like economies of scale, production functions, and production
technology.
  Understand how the company determines its production quantity and
optimal production level.
Step 2: Impact of Economies of Scale, Labor Costs, and Supply Chain Efficiency
1. Economies of Scale:
 Assess how economies of scale impact the company's production costs.
Determine if the company benefits from cost advantages as production
volume increases.
 Analyze whether the company engages in mass production or batch
production to achieve economies of scale.
2. Labor Costs:
 Evaluate the role of labor costs in the company's cost structure. Compare
labor costs to other cost components.
 Investigate whether the company employs skilled or unskilled labor, and
how this choice affects production efficiency and costs.
3. Supply Chain Efficiency:
 Explore the efficiency of the company's supply chain, including sourcing of
raw materials and components, inventory management, and distribution.
 Assess how supply chain strategies impact production costs and
responsiveness to market demand.
Step 3: Competitive Strategies and Their Relation to Production Theory
1. Competitive Strategies:
 Investigate the strategies employed by the company to remain competitive
in the global market. This may include cost leadership, product
differentiation, or innovation.
 Analyze how these strategies are aligned with the company's production
theory and cost structure.
2. Adaptation to Market Changes:
 Assess the company's ability to adapt to changes in customer
preferences, technological advancements, and market fluctuations.
 Determine how production flexibility and agility are maintained.
Step 4: Recommendations and Conclusion
Based on the analysis, provide recommendations for the company to enhance its
competitiveness. Consider suggesting improvements in cost management, production
processes, or supply chain efficiency.
Key Considerations:
 The electronics manufacturing industry is highly dynamic and subject to rapid
technological changes, so adaptability is crucial.
 Examine the company's international market presence and trade relationships.
 Consider the role of government policies and incentives in supporting the
manufacturing sector in the Philippines.
By examining the cost analysis, production theory, and competitive strategies of the
electronics manufacturing company, you can gain valuable insights into the factors that
influence its production costs and its ability to compete globally, ultimately contributing
to a better understanding of the Philippines' manufacturing sector.

C. ARTICLE # 3 Philippines Opens Renewable Energy to Full Foreign Ownership

QUESTION NUMBER 3
3. Renewable Energy Investment: Background: The Philippines has been exploring
renewable energy sources like solar and wind power to reduce its dependence on fossil
fuels.
Case Study:
1. Assess the cost-benefit analysis of a solar power project in the Philippines.
2. Analyze the initial investment, ongoing operational costs, and energy production over
time.
3. Explore how government incentives and subsidies impact the project's feasibility and
profitability and how these costs relate to production theory in the renewable energy
sector.
Analyzing the cost-benefit analysis of a solar power project in the Philippines and its
relationship with government incentives, subsidies, and production theory is important
for understanding the feasibility and profitability of renewable energy investments.
Here's a step-by-step approach to address your questions:
Step 1: Cost-Benefit Analysis
1. Initial Investment:
 Assess the upfront costs associated with the solar power project, including
solar panel installation, inverters, mounting structures, and electrical
infrastructure.
 Consider any land acquisition or leasing costs, if applicable.
2. Ongoing Operational Costs:
 Analyze the recurring expenses such as maintenance, cleaning,
monitoring, and insurance.
 Include costs related to periodic equipment replacements or upgrades.
3. Energy Production Over Time:
 Calculate the expected energy production of the solar power project over
its operational lifespan. This may involve data on solar panel efficiency,
sun exposure, and weather conditions.
 Consider any degradation in panel efficiency over time.
Step 2: Government Incentives and Subsidies
1. Government Policies:
 Explore the regulatory framework and policies related to renewable energy
in the Philippines.
 Identify any specific incentives or subsidies offered to promote solar power
projects, such as tax incentives, feed-in tariffs, or grants.
2. Impact on Feasibility and Profitability:
 Evaluate how these government incentives and subsidies affect the
overall financial viability of the project.
 Determine the extent to which these incentives offset initial investments
and reduce ongoing operational costs.
Step 3: Production Theory in Renewable Energy
1. Production Function:
 Apply production theory concepts to the solar power project, considering
factors like the quantity of inputs (solar panels, labor) and the output
(energy production).
  Assess how the project optimizes its production function to maximize
energy output while minimizing costs.

2. Economies of Scale:
 Determine whether the project benefits from economies of scale as it
expands its capacity, potentially lowering costs per unit of energy
produced.
Step 4: Feasibility and Profitability Analysis
1. Financial Analysis:
 Calculate the project's net present value (NPV), internal rate of return
(IRR), and payback period to assess its financial feasibility and
profitability.
 Consider factors like discount rates and inflation.
Step 5: Recommendations and Conclusion
Based on the analysis, provide recommendations for the solar power project and draw
conclusions about its feasibility and profitability in the context of government incentives,
subsidies, and production theory.
Key Considerations:
 Consider the variability of solar energy generation due to seasonal changes and
weather patterns.
 Evaluate the potential environmental and social benefits of the solar power
project, such as reduced greenhouse gas emissions and job creation.
 Keep in mind that renewable energy technologies continue to evolve, which may
affect the project's long-term viability.
By conducting a comprehensive analysis, you can provide valuable insights into the
economic viability of solar power projects in the Philippines, taking into account
government support and production theory principles.
D. ARTICLE #4 Sustainable fishery management trends in Philippine
4. Fishery Management: Background: The Philippines is an archipelago with a
significant fishing industry. Sustainable fishery management is essential for the
livelihood of coastal communities.
Case Study:
1. Investigate the cost analysis of implementing sustainable fishing practices in a
coastal region.
2. Evaluate the expenses associated with monitoring, enforcement, and education
efforts.
3. Assess how these costs influence the long-term health of fish stocks and the well-
being of local fishermen, relating it to production theory in resource management.
Analyzing the cost analysis of implementing sustainable fishing practices in a coastal
region in the Philippines and its relationship with monitoring, enforcement, education
efforts, and production theory in resource management is crucial for the well-being of
local communities and the conservation of fish stocks. Here's a step-by-step approach
to address your questions:
Step 1: Cost Analysis of Sustainable Fishing Practices
1. Implementation Costs:
 Investigate the costs associated with transitioning to sustainable fishing
practices, including equipment upgrades, modifications to fishing gear,
and any initial training or education for fishermen.
2. Operational Costs:
 Analyze ongoing expenses related to sustainable practices, such as the
cost of eco-friendly gear, fuel efficiency improvements, and any additional
labor or management required for sustainable fishing operations.
Step 2: Monitoring, Enforcement, and Education Expenses
1. Monitoring and Enforcement:
 Assess the costs of monitoring fish stocks, enforcing fishing regulations,
and preventing illegal fishing activities. This may include expenses for
personnel, surveillance technology, and patrol vessels.
2. Education and Training:
 Evaluate the costs associated with educating local fishermen about
sustainable practices, regulations, and the benefits of conservation. This
may involve workshops, outreach programs, and educational materials.
Step 3: Production Theory in Resource Management
1. Production Function:
 Apply production theory concepts to fishery management by considering
inputs (e.g., fishing effort, technology) and outputs (e.g., fish catch) in the
context of sustainable practices.
 Analyze how the management strategy optimizes the production function
to achieve long-term fish stock sustainability.
2. Renewable Resource Management:
 Discuss the principles of renewable resource management and how they
relate to the sustainable management of fish stocks, emphasizing the
need for sustainable harvesting rates and stock replenishment.
Step 4: Long-Term Impacts and Well-Being Assessment
1. Fish Stock Health:
 Examine the long-term health and status of fish stocks in the coastal
region. Assess whether sustainable practices lead to increased fish
populations, reduced overfishing, and improved biodiversity.
2. Well-Being of Local Fishermen:
 Evaluate the well-being of local fishermen, considering factors such as
income stability, job security, and community resilience. Determine how
the shift to sustainable practices affects their livelihoods.
Step 5: Recommendations and Conclusion
Based on the analysis, provide recommendations for sustainable fishery management
in the coastal region and draw conclusions about the cost-effectiveness of implementing
sustainable practices and their impact on the well-being of local communities.
Key Considerations:
 Consider the role of community engagement and participation in promoting
sustainable practices.
 Assess the effectiveness of regulatory measures and their enforcement in
achieving sustainability goals.
 Investigate potential external factors, such as climate change, that may affect fish
stocks and the success of sustainable management efforts.
By conducting a thorough analysis, you can contribute to the development of
sustainable fishing practices that support both the long-term health of fish stocks and
the livelihoods of coastal communities in the Philippines.