This website uses cookies to ensure you have the best experience. Learn more

Managerial Economics Essay

2901 words - 12 pages



Class: MBAOUM0514-K14A

Question 1
a. What is (are) the main difference(s) between a monopolistically competitive market and a monopoly market?
Their characteristics are different:
|Monopolistically competitive market |Monopoly market |
|Large number of small firms: |A single firm selling all output in a market: |
|It is relatively small compared to the overall size of the market. |It is a market controlled by a single seller. ...view middle of the document...

| |
|Relative freedom of entry into and exit out of the industry |Restrictions on entry into and exit out of the industry, and more |
|Monopolistically competitive firms, like perfectly competitive firms, |often than not |
|are free to enter and exit an industry. |A monopoly is generally assured of being the ONLY firm in a market |
|Monopolistically competitive firms can acquire whatever labor, |because of assorted barriers to entry. |
|capital, and other resources that they need with relative ease. There |Some of the key barriers to entry are: (1) government license or |
|is no racial, ethnic, or sexual discrimination. |franchise, (2) resource ownership, (3) patents and copyrights, (4) |
| |high start-up cost, and (5) decreasing average total cost. |
|Extensive knowledge of prices and technology |Specialized information about production techniques unavailable to |
| |other potential producers |
| |Monopoly is commonly characterized by control of information or |
|In monopolistic competition, buyers do not know everything, but they |production technology not available to others. This specialized |
|have relatively complete information about alternative prices, product|information often comes in the form of legally-established patents, |
|differences, brand names, etc…Moreover, each seller also has |copyrights, or trademarks. While these create legal barriers to entry |
|relatively complete information about the prices charged by other |they also indicate that information is not perfectly shared by all. |
|sellers so that they do not inadvertently charge less than the going | |
|market price. | |
| |A monopoly firm might know something or have a piece of information |
|Extensive knowledge also applies to technology and production |that is not available to others. This "something" may or may not be |
|techniques. Every monopolistically competitive firm has access to |patented or copyrighted. It could be a secret recipe or formula. |
|essentially the same production technology. Some firms might have a |Perhaps it is a unique method of production. |
|few special...

Other Papers Like Managerial Economics

Solving A Numerical On Concepts Of Costs

349 words - 2 pages = (200 – 150)/(60 – 50) = 5 MC60 = (350 – 200)/(70 – 60) = 15 Reference Keat, P. G., & Young, P. K. (2009). Managerial economics: Economic tools for today's decision makers. Upper Saddle River, N.J: Prentice Hall.

How Managerial Accounting Adds Value To The Organizations

3231 words - 13 pages 1.0 ABSTRACT Managerial Accounting is tools for business decision making. The use of management accounting information is a key for organizational success. This essay will explain on the importance of managerial accounting process in organization to successfully carrying out the day to day as well as long term activities and goals. First, it describes how the evolution and change in managerial accounting. Second, the essay looks at the role of

Optimization Techniques

437 words - 2 pages Econ 4140/5140 Managerial Economics Dr. Michael Nieswiadomy Homework #2 Due date: Feb. 8, 2010 Show your work. Answer 100 points worth of questions. 1. (20 pts.) The total cost function at the Tate company is TC = 200 + 3Q + .5Q2, where TC is total cost, and Q is output. a. What is marginal cost (the derivative of TC with respect to Q) when Q = 1? b. What is marginal cost when Q = 5? c. What is marginal

Why Finance?

343 words - 2 pages My interest in finance stems from an early passion for math. Quantitative work was always appealing to me. As I started growing older, I learned more about finance that seemed to combine the love I had for numbers and human interaction. I exposed myself to finance related classes such as Economics and began to participate in finance related activities such as Euro Challenge and Econ Challenge. I became engrossed with Forbes articles and reading

Home Work

1019 words - 5 pages Department of Management Name of the faculty member : Neha Shandilya Course No. ECO515 Course Title: Managerial Economics Class: MBA Semester I Section: R1001 Batch 2010-12 Max. Marks: 15 Date of Allotment:18/8/10 Date of Submission: 01/09/10 S. no. Roll No. Topic No. Objectives of Aca demic Activity Topic


1161 words - 5 pages Lecture 5 Chapter 8 Unregulated Corporate Reporting Decisions: Consideration of Systems-Oriented Theories Question 1: In relation to Political Economy Theory, which of the following statements is false? A: Political Economy Theory views society, politics and economics as inseparable B*: Political Economy Theory is derived from Positive Accounting Theory C: Legitimacy Theory and Stakeholder Theory are derived from Political Economy Theory

Finance Npv

498 words - 2 pages Managerial Economics and Financial Management Term Paper 2014-15 Name: Shreyansh Gautam Entry no.: 2014SMT6638 Contact: 7827248450 Topic: Capital Budgeting Introduction: I’m Shreyansh Gautam doing my MBA form an prestigious institute DMS, IIT-D and an Electronics and telecom engineer. I have some knowledge on Capital Budgeting, and the learning which I’m receiving here helped me in solving a problem of one of my friend. Here

Statistics In Business

488 words - 2 pages . The use of statistics helps determine the value of any proposed business endeavor (Lind, 2011). Managers use statistical data and analysis to control and predict employee production. When planning entry into a new market, statistics can be used to build business plans and marketing strategies. Statistics aid in managerial decision-making in all departments from accounting, production, to marketing. Without a full understanding of the

Managerial Econ

799 words - 4 pages Ba 401 – Managerial Economics Problem Set #1 Due: Sunday, February 1st #1. (20 pts) Imagine that two years after receiving your college degree, your annual salary as an assistant store manager is $50,000, you own a building that rents for $14,400 yearly, and your financial assets generate $5,000 per year in interest. On New Year’s Day, after deciding to be your own boss, you quit your job, evict your tenants, and use your financial assets


1362 words - 6 pages manage people in organizations is based on a set of assumptions about humans that are part of the managerial theory that guides the formation and operation of complex organizations. Management theory and the models of human beings that are incorporated in them need not be formally articulated statements. They are often implicit as values, assumptions and beliefs that form the basis for organization and action. This seminar will examine a range of

Operation Decisions

2727 words - 11 pages :// McGuigan, J. M. (2014). Pricing techniques and analysis. In J. M. McGuigan, Managerial economics: Applications, strategies and tactics (p. 500:531). Mason: Cengage Learning. McGuigan, J. R. (2014). Production economics. In J. R. McGuigan, Managerial economics: Applications, strategies and tactics (13 ed.) (p. 234:264). Mason: Cengage Learning. McGuigan, J. M. (2014). Applications of cost theory. In J. M

Related Essays

Managerial Economics Essay

1283 words - 6 pages provider into a bargaining chip. Instead of remaining competitive and streamlined, the provider becomes bloated and slow. Conclusion: Two opportunities and challenges were outlined in the earlier section of the paper. One, poor economic conditions and two, affordable health insurance. As a student in economics, I believe that giving tax incentives through tax breaks can significantly increase the capacity of the economy to create jobs

Managerial Economics Essay

352 words - 2 pages Spring 2012 MBA 731, Problem Set #1 Due Date: After chapter 4 has been covered. 1. Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current long-run equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. a. Derive the (linear) long-run demand and supply equations. b. Suppose the long-run supply curve you derived above

The One Essay

345 words - 2 pages UNIVERSITI TUNKU ABDUL RAHMAN (UTAR) FACULTY OF BUSINESS AND FINANCE (FBF) MAY 2012 TRIMESTER UBMM/UKMM1013 MANAGEMENT PRINCIPLES TUTORIAL QUESTIONS Bachelor of Business Administration (Hons) (BA) Bachelor of Commerce (Hons) Accounting (AC) Bachelor of Business Administration (Hons) Banking & Finance (BF) Bachelor of Economics (Hons) Financial Economics (FE) Bachelor of Arts (Hons) English Language

Master Essay

440 words - 2 pages assignment page length. The specific course learning outcomes associated with this assignment are: •Apply the concepts of supply and demand to determine the impact of changes in market conditions in the short run and long run, and the economic impact on a company’s operations. •Use technology and information resources to research issues in managerial economics and globalization. •Write clearly and concisely about managerial economics and globalization using proper writing mechanics. Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric can be found