BUS 207 Lecture Notes - Lecture 1: Microeconomics, Marginal Cost, Marginal Product
21 Oct 2017
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Document Summary
Managerial economics deals with the application of microeconomic theory and methodology to decision-making problems. Study of rational behavior rational: tells you what his or her goal is and has a plan to get there. Goal needs a time dimension and must be an achievable challenge and must relate to some kind of a variable that we can measure. (ex: goal is to graduate in 2018 with a. 4. (cid:882) gpa(cid:524) not )"m going to study, since studying is just an activity. Better goal could be to pass the exam since we could know if you achieved it or not. Recognize role of profits and understand the time value of money. Ex: iphone price is high when released and cheaper later. Equality in wage bonuses doesn"t make you excel, if you know you"re going to be. Efficiency wage: a wage that is bigger than the worker"s efficiency cost. Ex: 5 per awarded for that effort same as a star employee.
