BUS 207 Chapter 1: Chapter 1 Vocab and Notes
Document Summary
Managerial economics chapter 1: introduction to economic decision making. Managerial economics: the analysis of major management decisions using the tools of economics. It applies many concepts from economics (demand and cost, monopoly and competition, allocation of resources and economic trade-offs) to aid managers in making better decisions. First example: a u. s. multinational carmaker produces and sells its output in two geographic regions. The markets for vehicles at home and abroad differ with respect to demand and the production facilities have different costs and capacities. Second example: in 1987 michael eisner, the head of walt disney co. signed the final contract with the french government to build and operate a billion theme park outside of. Based on its long record of success, disney s management team confidently embarked on a monumental investment. However, since opening in april 1992, euro disney s performance has been dismal, marked by lower-than-expected revenues and elevated costs.