Application of Managerial Economics in Decision Making

The roles of for-profit and nonprofit businesses in the economy are both organizations that rely on the factors of production which are the four fundamental resources. One of them is natural resources such as land, fresh water, wind and mineral deposits. The value of all natural resources tends to rise with high demand, low supply, or both. Another one is capital which includes machines, tools, buildings, information, and technology. Capital does not include money, although businesses use to money acquire, maintain, and upgrade their capital. In additional human resources consist of physical, intellectual, and creative contributions of everyone who works within an economy. Education and motivation have become progressively important to human resources. The last fundamental resources are entrepreneurship and they are people who take risk of

Entrepreneurs, individuals who come up with an plan in means of profit while knowing the risks that comes along. however, in adam smith time(1723-1790), the definition of an entrepreneur was different it was an “ individual purusing his or her own good to achieve the best good for all”. Those individuals led by the “invisible hand” would provide

4) The purpose of the committee is to find the best possible solution to tackle the financial crises faced by the university. However, it is not something that is guaranteed to be accepted by the President. The president will consider the report of the committee as the solution to the financial crises but the president does have the power to override, make suggestions or modify the solution as he see fits. It was wise to appoint her assistants as the vice provosts, to the task force to ensure that the president had easy access to information and minutes of the meetings. While the intent is to lower the cost of fringe benefits, the president does not want to

Resources are all the ingredients needed for production. The factors of production include land(natural resources, labor (workers for the production process) entrepreneur (business owners), and capital (technology and machinery/tools of production).

The three chapters that we studied this week highlighted many important principles in the study of Economics. One of those concepts is the

Define the concept of scarcity: Scarcity: The goods available are too few to satisfy individuals' desires. Scarcity is a central concept in economics. Resources are scarce if any individual would prefer to have more of that good or service than they already have. Most goods and services are scarce - those that are not are known as free goods. Where goods are scarce it is necessary for society to make choices as to how they are allocated and used. Economists study (among other things) how societies perform the optimal

TEXT: Economics, Principles, Problems and Policies, 15th Edition, McConnell and Brue Video: Econ U$A series with discussion Class Activities: APIP workbook activities, reinforcement and writing activities and other teacher-developed materials This semester-long course gives students a thorough understanding of the principles of economics that apply to the function of individual decision-makers, both consumers and producers, within larger economic systems. It places primary emphasis on the nature and

1a. Elasticity in the economics can demonstrate the consumer’s response to the change in a commodity’s price or other conditions.

Surprisingly, the numbers for alternative-fuel vehicles were lower. Respondents own an alternative-fuel vehicle and are planning to buy or thinking seriously about buying one (Ballestero, & Romero, 2013). The most common type of alternative-fuel vehicle represented in the survey was gas electric-hybrids, named by about half of current alternative-fuel car owners.

20. Suppose the demand for good X is given by Qdx = 10 - 2Px + Py + M. The price of good X is $1, the price of good Y is $10, and income is $100. Given these prices and income, how much of good X will be purchased? A. B. C. D. 115. 515. 1,000. none of the statements associated with this question are correct.

This approach, when applied to China, gave primacy to the factor of production that was most scarce in China, large-scale machinery and other forms of relatively advanced material technology, and de-emphasized the factor of production that China had in relative abundance, human labor power.  If labor is the most abundant "resource" in the society, then according to orthodox economic thinking, labor (or, better said, the potential to do labor) should be considered relatively less costly than other more scarce resources, such as physical capital, where physical capital is understood as the material embodiment of technology (machines, tools, assembly lines, etc.) that has been developed by previous investments of the available social surplus and/or

|5000 employees at the beginning of the 1990s, it has grown to exports of $70 billion and 2.8 million employees today, and a globally dominating |

5. What are the factors of production? How can economies grow when one or more of the factors is weak?

Chapter five in the book “Judgment in Managerial Decision Making” Max. H Bazerman and Don A. Moore is titled Framing the Reversal of Preference. This chapter explains how framing or alternating of a problem can defer one’s decision making process. In a written form of questions, the words may be manipulated by a certain frame effect that influences a person’s decision or answer to the question. Reversal of preference is a theory that people change their mind or preference when the decision involves more than one variable. When the decision is surrounded by similar suggested outcomes the mind can then decide on what information is most important. Framing is part of the reversal of preference by affecting one’s judgment and placing influence on the final decision.

Entrepreneurship refers to the act of investing in productive capital and assuming risk for productive ventures. An entrepreneur is an individual who purchases factors of production and combines them to produce consumable output. Entrepreneurs are distinguished from capitalists- who rent out capital to entrepreneurs- and workers, who sell their labor to entrepreneurs. Entrepreneurs are indispensable to the functioning of any economy. Entrepreneurs grow economies by creating new output, increase efficiency in economies, allocate society’s resources efficiently, and serve consumers and job-seekers.