Welcome to EC 209 Managerial Economics Group A
- Slides: 10
Welcome to EC 209: Managerial Economics- Group A By: Dr. Jacqueline Khorassani Study Guide Week One (Note: You must go over these slides and complete every task outlined here before Thursday, September 6)
1. Study the Course Contract available on line at www. marietta. edu/~khorassj • • • Click on Fall 2007 Courses Click on EC 209: Managerial Economics Click on Course Contract – It is in Microsoft Word format • • Make sure you understand the contract Ask me questions via an email to khorassj@marietta. edu or jacqueline. khorassani@nuigalway. ie.
2. Study the textbook’s Preface • Believe me it is not a waste of time to read the Preface of a book • Ask me questions via an email.
Chapter 1: Make sure you understand the following topics and can answer the related questions. If not, ask me your questions via an email or in class. • • Why is a manager? What is economics? What is managerial economics? What are some goals and constraints of managers?
Chapter 1 continued • What is the – – – opportunity cost? Implicit cost? Explicit cost? Accounting profit? Economic profit?
Chapter 1 continued. • Why are profits so important? • The five forces framework and industry profitability – Study Figure 1 -1 and the discussion that goes along with it • Incentives – Why are they important? – Examples
Chapter 1 continued • What are markets? – What is consumer-producer rivalry? • What causes it? – What is consumer-consumer rivalry? • What causes it? – What is producer-producer rivalry? • What causes it? – What is the role of the government?
Chapter 1 continued • The time value of money – Why does time matter? – What is the present value of a lump-sum amount to be received at some point in the future? – What is the present value of a stream of future amounts? – What is the net present value of a stream of future amounts? – What is the present value of a perpetuity of identical cash flows?
Chapter 1 continued • What is the value of a firm? – How does that relate to profits? • What is the value of the firm if profits grow at a constant rate that is below interest rate? – If current profits have not been paid out – If current profits have been paid out
Chapter 1 continued • What is the marginal analysis? – Why is it so important? – What is marginal benefit? – What is marginal cost? • What is the marginal principle? • How do we derive marginal curves from total curves? – Make sure you understand Figure 1 -2 and the discussion that goes along with it.
