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Managerial Economics: Applications, Strategy, and Tactics
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Information -- forecasting, relationships, expectations, possible retaliation by rivals, etc. Economic profit is the difference between revenues and total economic cost including the economic or opportunity cost of owner supplied resources such as time and capital. Shareholders may want profits, but managers may wish to relax. The shareholders are principals, whereas the managers are agents. Conflicting motivations between these groups are called agency problems. Maximization of the quantity of output, subject to a breakeven constraint.
A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the. The level of an economic activity should be increased to the point where the a. The net present value of an investment represents a. Generally, investors expect that projects with high expected net present values also will be projects with a. An closest example of a risk-free security is a. General Motors bonds b.
McGuigan, R. Charles Moyer, Frederick H. This is an electronic copy of all solutions of the text book chapter end problems. Or step by step answers to all chapter end questions. Examples are available in the original text book.
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Moyer Upper Level Economics Titles. As always, the seasoned author team balances a solid foundation of traditional microeconomic theory with extensive exploration of the latest analytical tools in managerial economics, such as game-theoretic tactics, information economics, and organizational architecture. PART I. Exhaustible Natural Resources, Advanced Material PART V.
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