Managerial Economics & Business Strategy Chapter 4 The Theory of Individual Behavior McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies‚ Inc. All rights reserved. Overview I. Consumer Behavior – Indifference Curve Analysis. – Consumer Preference Ordering. II. Constraints – The Budget Constraint. – Changes in Income. – Changes in Prices. III. Consumer Equilibrium IV. Indifference Curve Analysis & Demand Curves – Individual Demand. – Market Demand. 4-2 Consumer
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PY Series Spring Cone Crusher United States began in 1987 with the invention of continuous gyratory crusher crushing work‚ was the first development of a high-power‚ large crushing ratio‚ high productivity hydraulic crusher‚ it is the Shanghai SBM to absorb the countries cone crusher manufacturing technology based on the development. PY spring cone crusher cone crusher with the traditional structure is markedly different in design‚ which according to “crush the material layer theory”‚ using static
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= $10 b. What is the price of X? Quantity X = 40 40 × Px = 500 Price X = ? Px = 500 / 40 Income = 500 Px = $12.50 c. Write the equation for the budget line LZ. Budget line LZ Py = $10 Px = $12.50 M = $ 500 PxX + PyY = y 12.50x + 10y = 500 or y = 50 – 1.25x d. What combination of X and Y will the consumer choose? Why? Consumer choose 20 units of X and 25 unit of Y. Indifferent curve II
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Carl Hurst Balti Pies a) Calculate the contribution per batch of pies. A: Contribution = Selling Price – Variable Cost Contribution = 100(50p) - £20 Contribution = £50 - £20 Contribution = £30 b) How many batches would Carl need to produce in his first year of trading to break-even. A: Break-even output = Fixed costs/Contribution Break-even output = (£2‚500 + £500)/£30 Break-even output = 100 batches c) How much profit would Carl make if he sold 55‚000 pies in his first year
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capitalist and super market tycoon who happened to be in the park. Mr. Safestone wants to sell frozen gravel berry pies in bulk at his super markets‚ Fred pictures himself as an entrepreneur and the gravel berry pie king‚ and the two establish a “handshake deal”. Generating a partnership with Fred’s family and the Rubbles‚ they start planning on the first order of fifty frozen pies. Fred uses the advanced money to market himself as the gravel berry pie king and puts his picture dressed in a king’s
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the money supply V: the velocity of money P: the prices of goods and services T: the number of transactions made in the economy. Making this equation applicable to the macroeconomy‚ T becomes Y where PY = nominal GDP. Rearranging the Quantity Equation with V as the subject‚ we get V= PY/M THE MONEY DEMAND FUNCTION The quantity of money in an economy can expressed in terms of the number of goods and services that it can buy. This is called real money balances M/P. Thus real balances
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theme of paragraph one is she was starting a new journey. The last element is the climax.Annie went to the back of the cotton gin and started cooking meat pies in a stall.The workers came out for dinner time and smelled the meat pies in the air.Most had their meals prepared but chose to buy a meat pie instead for a nickel.She wrapped the meat pies in newspapers to soak up the grease.Her quote was"mixed groceries enough to scare hungry away from a starving man."
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NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Business Economics SEM – I 1. Calculate Elasticity in the following cases: a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently‚ the demand for the product is raised from 20‚000 units to 25‚000 units. Calculate the price elasticity of demand. ANSWER A: PRICE ELASTICITY OF DEMAND: MEANING: Price elasticity of demand
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UTILITY Utility refers to want satisfying power of a commodity. In objective terms‚ utility may be defined as the “amount of satisfaction derived from a commodity or service at a particular time”. Assumptions: • UH:\Games.exetility can be measured. • Marginal Utility of money remains constant • No change in income of the consumer‚ his taste & fashion to be constant • No substitute • Independent marginal utility of each unit of commodity Utility Characteristics:
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Question 1 (a) Simons (1999‚ pg 768) describes intrinsic motivation as “desire to engage in behaviours or actions in anticipation of internally- generated rewards such as personal feelings of accomplishment” and extrinsic motivation Simons describes as (1999‚ pg 766) “desire to engage in behaviours or actions in anticipation of tangible rewards‚ such as money or promotion”. Extrinsic motivation is created by financial incentives. An incentive as Simons (1999‚ 767) describes as being “a reward
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