Managerial Economics: Theory and Practice

WSGPR 7/7/03 4:33 PM Page ii

WSGPR 7/7/03 4:33 PM Page iii

Managerial Economics: Theory and Practice

Edited by

Thomas J. Webster

Department of Finance & Economics Lubin School of Business Pace University

Study Guide

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Paris

WSGPR 7/7/03 4:33 PM Page iv

WSGPR 7/7/03 4:33 PM Page v

Table of Contents

Preface to the Student

xi

1

Introduction

Overview 1 Multiple choice questions 3 Shorter problems 9 Longer problems 10 Answers to multiple choice questions 11 Solutions to shorter problems 12 Solutions to longer problems 12

2

Introduction to Mathematical Economics

Overview 15 Multiple choice questions 16 Shorter problems 22 Longer problems 23 Answers to multiple choice questions 24 Solutions to shorter problems 25 Solutions to longer problems 27 v

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3

The Essentials of Demand and Supply

Overview 31 Multiple choice questions 33 Shorter problems 40 Longer problems 41 Answers to multiple choice questions Solutions to shorter problems 43 Solutions to longer problems 44

43

4

Additional Topics in Demand Theory

Overview 47 Multiple choice questions 48 Shorter problems 55 Longer problems 56 Answers to multiple choice questions Solutions to shorter problems 59 Solutions to longer problems 60

58

5

Production

Overview 63 Multiple choice questions 65 Shorter problems 72 Longer problems 73 Answers to multiple choice questions Solutions to shorter problems 74 Solutions to longer problems 76

74

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vii

6

Cost

Overview 79 Multiple choice questions 80 Shorter problems 87 Longer problems 89 Answers to multiple choice questions 90 Solutions to shorter problems 91 Solutions to longer problems 93

7

Proﬁt and Revenue Maximization

Overview 95 Multiple choice questions 97 Shorter problems 103 Longer problems 104 Answers to multiple choice questions 106 Solutions to shorter problems 107 Solutions to longer problems 108

8

Market Structure: Perfect Competition and Monopoly

Overview 113 Multiple choice questions 115 Shorter problems 123 Longer problems 124 Answers to multiple choice questions 125 Solutions to shorter problems 126 Solutions to longer problems 128

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9

Market Structure: Monopolistic Competition

Overview 131 Multiple choice questions 133 Shorter problems 138 Longer problems 139 Answers to multiple choice questions Solutions to shorter problems 141 Solutions to longer problems 141

140

10

Market Structure: Duopoly and Oligopoly

Overview 145 Multiple choice questions 146 Shorter problems 155 Longer problems 157 Answers to multiple choice questions Solutions to shorter problems 160 Solutions to longer problems 163

159

11

Pricing Practices

Overview 167 Multiple choice questions 169 Shorter problems 179 Longer problems 180 Answers to multiple choice questions Solutions to shorter problems 183 Solutions to longer problems 185

183

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ix

12

Capital Budgeting

Overview 191 Multiple choice questions 193 Shorter problems 204 Longer problems 205 Answers to multiple choice questions 207 Solutions to shorter problems 208 Solutions to longer problems 209

13

Game Theory

Overview 215 Multiple choice questions 217 Shorter problems 227 Longer problems 229 Answers to multiple choice questions 232 Solutions to shorter problems 233 Solutions to longer problems 235

14

Risk and Uncertainty

Overview 241 Multiple choice questions 244 Shorter problems 256 Longer problems 258 Answers to multiple choice questions 259 Solutions to shorter problems 260 Solutions to longer problems 263

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Market...