MANAGERIAL ECONOMICS

Study Guide for Test #1

1. Optimization using calculus

2.  Determining maximum or a minimum

3.  Multivariate optimization

4.  Constrained optimization

5. New management tools for optimization

6.  Other management tools for optimization

7.  Point price elasticity

8.  Factors affecting the price elasticity

9. Relationship between the price elasticity and marginal revenue

10. Point income elasticity

11. Classifying goods according to the income elasticity

12. Point cross-price elasticity

13. Classifying goods according to the cross-price elasticity

14. Using the elasticity to make predictions

15. Reasons for international convergence of tastes

16.  Impact of E-commerce on business

17.  Problems with E-commerce

18.  Accounting vs. economic costs

19.  Relevant vs. sunk costs

20.  Short-run total costs - graph

21.  Short-run per unit costs - graph

22.  Graphical relationship between total costs and per unit costs

23.  Relationship between long-run average cost and short-run average cost

24.  Economies of scale vs. diseconomies of scale - graph

25.  Reasons for economies of scale

26.  Learning curve - graph and explanation

27.  Changes in global economics

28.  Areas where international economies of scale can be achieved

29.  Reasons for growth in supply chain management

30.  Breakeven  analysis

31.  Achieving target level of profit

32.  Degree of operating leverage