TAILIEUCHUNG - Lecture Managerial economics (Ninth edition): Chapter 3 – Thomas, Maurice

Chapter 3 - Marginal analysis for optimal decision making. In this chapter, you will learn to: Employ marginal analysis to find the optimal levels of activities in unconstrained maximization problems; explain why sunk costs, fixed costs, and average costs are irrelevant for determining the optimal levels of activities; employ marginal analysis to find the optimal levels of two or more activities in constrained maximization and minimization problems. | Chapter 3 Marginal Analysis for Optimal Decision Making Optimization An optimization problem involves the specification of three things: Objective function to be maximized or minimized Activities or choice variables that determine the value of the objective function Any constraints that may restrict the values of the choice variables 3- Choice Variables Choice variables determine the value of the objective function Continuous variables Can choose from uninterrupted span of variables Discrete variables Must choose from a span of variables that is interrupted by gaps 3- Net Benefit Net Benefit (NB) Difference between total benefit (TB) and total cost (TC) for the activity NB = TB – TC Optimal level of the activity (A*) is the level that maximizes net benefit 3- NB TB TC Optimal Level of Activity (Figure ) 1,000 Level of activity 2,000 4,000 3,000 A 0 1,000 600 200 Total benefit and total cost (dollars) Panel A – Total benefit and total cost curves A 0 1,000 600 200 Level

• Kinh tế học
• Managerial economics
• Lecture Managerial economics
• Microeconomic theory
• Economic theory
• Marginal analysis
• Choice variables
• Market interactions
• Fundamentals of managerial economics
• Marginal benefit
• Economic principles
• Kinh tế học quản lý
• Price discrimination
• Monopolistic competition
• Oligopoly games
• Traditional oligopoly models
• Capital market
• Labour market
• Economic equations
• Economic applications
• Economic applications of derivatives
• Economic application
• Multi variable functions
• Constrained optimization
• Scatter diagram
• Forms of money
• Monetary policy
• Perfect competition
• Demand function
• Supply function
• Quantitative demand analysis
• Theory of individual behavior
• Demand estimation
• Production function
• Costs of production
• Organizing production