文档介绍：Managerial Economics: Applications, Strategy, and Tactics, 8th Edition
by
McGuigan, Moyer, & Harris
prepared by
Richard D1>. Marcus
University of Wisconsin - Milwaukee
?1999 South-Western College Publishing
Chapter 1
Introduction to Managerial Economics
Structure of Decision Models
Profit’s Role
Agency Problems & Solutions
Not-for-anizations
Why Corporations Have eeded Over anizational Forms
?1999 South-Western College Publishing
Managerial Economics:
An Applied Course
Integrates the use of economics, math, and financial analysis to make good business decisions
?1999 South-Western College Publishing
TOPICS
Demand and Supply Analysis
and how to estimated elasticities
Production and Cost Analysis
and how to estimate relationships
Monopoly, Competition, and Oligopolies
and good pricing decisions
?1999 South-Western College Publishing
Economic Decisions
Constraints -- limitations of time, energy, money, productive capacity, regulatory climate, etc.
Information -- forecasting, relationships, expectations, possible retaliation by rivals, etc.
?1999 South-Western College Publishing
CONSTRAINTS
INFORMATION
GOALS & OBJECTIVES
Objectives of the Firm
Profit maximization
Shareholder wealth
The value of the firm, V, is the present value of expected future profits (p) or cash flows, discounted at the shareholders required rate of return, ke, ignoring taxes. ?
V = S p t /(1+ke) t
t=1
?1999 South-Western College Publishing
Goals or Objectives
Maximize Present Value of Profits =
N
S (Revenuet - Costst) / (1+ke)t
t=1
Decision Model Language:
Objective Function = sets up the goals & the constraints
Decision Rule = shows what is optimal
?1999 South-Western College Publishing
EXAMPLE: MAX P { A, B }
simple objective function, simple decision rule
Pick A if profit {A} > profit {B}, otherwise pick B.
Max Profit { Q} for petitive firm
produce where P = MC
?1999 South-Western College Publishi