Transcript Chapter 1 Introduction to Managerial Economics

Topic 1
Introduction to Managerial
Economics
2009.Spring
Some Examples
• Boeing’s Struggle to Retain Market
Leadership
• The Disney Corporation: Expansion of
the Magic Kingdom
• In What Size Production Runs Should
Toyota Produce Its Cars?
Relationships of Managerial
Economics to Other Disciplines
企業管理（決策問題）
傳統經濟學（理論）
Theory of Consumer
Behavior
Theory of Firm
Theory of Market
Structure and Pricing
Product Price and Output
Make or Buy
Production Technique
Inventory Level
Advertising Media and
Intensity
Labor Hiring and Training
Investment and Financing
管理經濟學
（應用經濟理論與決策
方法解決企業問題）
提供企業最佳決策
決策理論（分析方法）
Numerical Analysis
Statistical Estimation
Forecasting
Game Theory
Optimization
Risk Analysis
The Process of
decision-making
Identify objectives
Define the problem
Identify possible solutions
Select the best possible
solution
Implement the decision
Theory of the firm
A theory indicating how a firm
behaves and what its goals are
Value of the firm
The present value of the firm’s
expected future cash flows
Present value of
expected future profits
n
t=1
(TRt - TCt)
(1+i)t
where: TRt = the firm’s TR in year t
TCt = the firm’s TC in year t
i = the interest rate
and t goes from 1 (next year) to n (the
last year in the planning horizon)
Principal-agent problem
Occurs when owners can only
imperfectly monitor the
behavior of employees
Market demand curve
Shows the amount of a commodity that
buyers would like to purchase at various
prices
Price
Demand
Quantity
Market supply curve
Shows the amount of a commodity that
sellers would offer at various prices
Price
Supply
Quantity
Market equilibrium price
A price that can be maintained
Supply
Price
Demand
Quantity
Demand shifts: left
Price
Supply
Demand
Quantity
Demand shifts: right
Price
Supply
Demand
Quantity
Supply shifts: right
Price
Supply
Demand
Quantity
Supply shifts: left
Price
Supply
Demand
Quantity
See you Next Week
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